- Friday, February 28, 2025
A spokesman for Adani Group stated that they were unaware of any subpoenas issued to investors.
By: Shubham Ghosh
PROSECUTORS in the US have sought information from shareholders of India’s Adani Group following a damaging report by a short-seller earlier this year.
Shares of the Indian conglomerate plummeted after Hindenburg Research accused it of stock manipulation, accounting fraud and improper use of tax havens.
According to the report, the US attorney’s Office in Brooklyn, New York, and the Securities and Exchange Commission have reached out to institutional investors with substantial holdings in Adani, seeking information regarding the company’s communications with them, as per Bloomberg News.
Adani Group, which has diverse interests in ports, mining, cement, and power, has firmly refuted the allegations. Gautam Adani, the 60-year-old leader of the group, briefly held the position of the world’s second-richest person until his fortune was impacted by the crisis. Currently, his net worth stands at approximately $49.7 billion.
A spokesman for Adani Group stated that they were unaware of any subpoenas issued to investors.
“Our various issuer groups remain confident that the disclosures are full and complete as disclosed in the relevant issuer offering circulars,” a company spokesperson was quoted as saying by Bloomberg.
Adani Group asserts that it has adhered throughout to the regulations and accounting standards of the jurisdictions where it operates.
The Hindenburg report, which was released January 24, accused the Indian company of artificially inflating the value of its stocks and that it failed to follow disclosure and shareholding rules.
The two US prosecutors mentioned in the reports have not provided any comments on the matter. Meanwhile, the Securities and Exchange Board of India (SEBI), the country’s market regulator, has faced challenges in its investigations into potential violations of overseas investment regulations at Adani.
A panel appointed by the Supreme Court of India reported last month that the SEBI’s inquiries had yielded no significant findings. The panel is expected to submit its final findings by mid-August.
