In a recent report, the Organised Crime and Corruption Reporting Project (OCCRP) claimed that the Adani Group, a prominent Indian conglomerate, had reportedly received millions of dollars in investments through ‘opaque’ Mauritius funds. These funds allegedly concealed the identities of supposed business partners linked to the Adani family, raising concerns about transparency.
OCCRP’s investigation, based on a review of documents from various tax havens and internal Adani Group emails, identified instances where investors purportedly engaged in trading Adani stocks via offshore entities.
This development follows earlier accusations by U.S.-based short-seller Hindenburg Research in January. Hindenburg Research had accused the Adani Group of questionable business practices, including the alleged use of offshore structures in tax havens like Mauritius. According to Hindenburg, these structures facilitated the discreet ownership of shares in Adani’s publicly listed companies by offshore funds.
In response to these claims, the Adani Group denounced the allegations as unsubstantiated, emphasizing their commitment to adhering to legal regulations. However, the controversy had a significant impact on the Adani Group’s stock value. After the January report, the company’s market value plummeted by $150 billion, though it has since regained some ground through debt repayment and restored investor confidence.
The OCCRP’s recent report, which includes the names of individual investors Nasser Ali Shaban Ahli and Chang Chung-Ling, described as ‘longtime business partners’ of the Adani family, adds to the ongoing scrutiny. Chang Chung-Ling, one of the investors mentioned in the report, expressed surprise at the focus on Adani stock purchases and emphasized the simplicity of their business endeavors.
It’s important to note that the assertions made in OCCRP’s report have not been independently verified by Reuters.
The fallout from the Hindenburg report prompted Gautam Adani, the billionaire leader of the conglomerate, to halt a planned $2.5 billion share sale and undertake efforts to reassure banks about his business practices. India’s Supreme Court subsequently appointed a panel to oversee a regulatory investigation into the allegations outlined in the Hindenburg report. The regulator’s latest statement indicated that its investigation is nearing completion, with a focus on offshore deals situated in tax havens.
As this situation continues to unfold, the Adani Group’s reputation and financial standing remain under scrutiny.
