New Delhi: In a fresh wave of controversy, the Adani Group has staunchly denied new allegations leveled against it by the U.S.-based research firm Hindenburg, branding the claims as “unfortunate and manipulative.” The accusations, released late Saturday, suggest questionable ties between the Adani Group and the current leadership of India’s market regulator, SEBI (Securities and Exchange Board of India). On Sunday, Adani Group issued a strong rebuttal, dismissing the allegations as a “mischievous” distortion of publicly available information, intended to damage the company’s reputation for personal gain.
Adani Group’s Firm Denial: Allegations Rejected as Baseless
In an official statement to the stock market, Adani Group rejected the allegations as “a repetition of previously dismissed claims” that have already been scrutinized and dismissed by the Supreme Court in January 2024. The group emphasized its commitment to transparency and adherence to legal and regulatory requirements, accusing Hindenburg of conducting a targeted campaign to mislead the public and manipulate market sentiment.
Controversial SEBI Link Allegations: Vinod Adani’s Investment Role Highlighted
The latest allegations by Hindenburg focus on supposed investments made by SEBI Chairperson Madhabi Puri Buch and her husband in offshore entities allegedly connected to Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani. According to Hindenburg’s report, the Buch couple’s investments date back to 2015, two years before Madhabi Buch was appointed a full-time SEBI member in 2017, and long before her elevation to chairperson in 2022.
Hindenburg’s blog post also claims that these investments were channeled through the Bermuda-based Global Opportunities Fund, which the firm alleges was used by entities linked to the Adani Group to trade in the shares of its own companies.
Whistleblower Documents and Offshore Fund Concerns
Citing alleged “whistleblower documents,” Hindenburg further accused the SEBI chief and her husband of holding stakes in dubious offshore funds tied to an embezzlement scam within the Adani Group. The firm questioned SEBI’s apparent disinterest in probing the “shadowy web” of Mauritian and other foreign entities allegedly involved in the Adani Group’s financial operations.
Adani Group’s Rebuttal: Transparent Foreign Holding Structures
In response, the Adani Group reiterated that its foreign holding structure is entirely transparent, with all necessary details disclosed in public documents. The group stressed that it has no commercial relationship with the individuals or entities mentioned in Hindenburg’s report, describing the allegations as a deliberate attempt to tarnish its reputation.
Adani Group Strikes Back: Labels Hindenburg a ‘Disgraced Short-Seller’
In a scathing critique of Hindenburg, Adani Group labeled the research firm as “a disgraced short-seller under investigation for multiple violations of Indian securities laws.” The company dismissed Hindenburg’s latest claims as nothing more than “the bluff of a desperate entity” that holds “total contempt for Indian laws.”
As the controversy deepens, the Adani Group remains resolute in its defense, while the allegations continue to draw significant attention both domestically and internationally, potentially impacting the group’s market standing and investor confidence.
