- Monday, March 10, 2025
The short seller cited Swiss media outlet Gotham City report that stated that $310 million belonging to an alleged front man for Gautam Adani has been frozen
By: Shajil Kumar
US-BASED short seller Hindenburg Research has claimed that Swiss authorities have frozen more than $310 million (£235.84m) in funds across multiple Swiss bank accounts as part of money laundering allegations into Adani Group, a charge that the conglomerate vehemently denied.
In a post on X, Hindenburg cited “newly released Swiss criminal records reported by Swiss media outlet” to state that “Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021.”
“Prosecutors detailed how an Adani front man invested in opaque BVI/Mauritius & Bermuda funds that almost exclusively owned Adani stocks,” it said citing the report.
Adani group rejected the allegations as baseless saying it had no involvement in any Swiss court proceedings.
“We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority,” it said.
It went on to state that “even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws.”
The allegations, it said, “are clearly preposterous, irrational, and absurd. We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value.”
The Swiss media outlet Gotham City in its report stated, “A ruling by the Federal Criminal Court (FCC) reveals that the Geneva Public Prosecutor’s Office was investigating alleged wrongdoing by the Indian conglomerate Adani well before activist investors from Hindenburg Research made the first accusations.”
“More than $310 million belonging to an alleged front man for billionaire Gautam Adani is sequestered in five Swiss banks,” it said adding the Office of the Attorney General of Switzerland (OAG) took over the investigation after the case was revealed in the media.
The back-and-forth is the latest in a long-running battle between Hindenburg and the family-run Indian industrial behemoth, which has interests ranging from mining and power generation to ports and media.
Adani Group saw billions of dollars wiped from its market value last year after a bombshell report by Hindenburg accused it of “brazen” corporate fraud.
Billionaire founder Gautam Adani, Asia’s second-richest man, denied the allegations made in that report, calling it a “deliberate attempt” to damage its image for the benefit of Hindenburg and other short-sellers. (Agencies)
