- The Organized Crime and Corruption Reporting Project (OCCRP) said that Millions of dollars were invested in some publicly traded stocks of Adani Group via “opaque” Mauritius funds.
- The OCCRP report has alleged insider trading via two foreign investors.
- The Adani Group today rejected what it called “recycled allegations” of hidden foreign investors.
- The claims were based on closed cases from a decade ago when the Directorate of Revenue Intelligence (DRI) probed allegations of over-invoicing and transfer of funds abroad.
- “The timing of these news reports is suspicious, mischievous, and malicious – and we reject these reports in their entirety,” the statement said.
Millions of dollars were invested in some publicly traded stocks of India’s Adani Group via “opaque” Mauritius funds that “obscured” involvement of alleged business partners of the Adani family, the Organized Crime and Corruption Reporting Project (OCCRP) said in an article.
Citing a review of files from multiple tax havens and internal Adani Group emails, the non-profit global network of investigative journalists said two individual investors – Nasser Ali Shaban Ahli from Dubai and Chang Chung-Ling from Taiwan – with “long-time business ties” to the Adani family used such offshore structures to buy and sell Adani shares.
The Adani Group today rejected what it called “recycled allegations” of hidden foreign investors in a report by the George Soros-funded Organized Crime and Corruption Reporting Project.
“We categorically reject these recycled allegations. These news reports appear to be yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report. In fact, this was anticipated, as was reported by the media last week,” said the ports-to-power conglomerate in a statement.
The claims, the conglomerate said, were based on closed cases from a decade ago when the Directorate of Revenue Intelligence (DRI) probed allegations of over-invoicing, transfer of funds abroad, related party transactions, and investments through FPIs (Foreign Portfolio Investors).
“Notably, these FPIs are already part of the investigation by the SEBI. As per the Expert Committee appointed by the Supreme Court, there is no evidence of any breach of the Minimum Public Shareholding (MPS) requirements or manipulation of stock prices,” said the group.
“It is unfortunate that these publications, which sent us queries, chose not to carry our response in full. These attempts are aimed at, inter alia, generating profits by driving down our stock prices and these short sellers are under investigation by various authorities.” It was vital to respect the ongoing regulatory process, given that the Supreme Court and Securities and Exchange Board of India (SEBI) are both overseeing the matter, the company added.
“We have complete faith in the due process of law and remain confident of the quality of our disclosures and corporate governance standards. In light of these facts, the timing of these news reports is suspicious, mischievous, and malicious – and we reject these reports in their entirety,” the statement said.
The CBI also investigated the allegations of over-evaluation and over-invoicing of power transmission equipment. It closed the case on 15 July 2015. The Enforcement Directorate has found that 18 companies, including foreign portfolio investors and foreign institutional investors in tax havens, were the top beneficiaries of short selling in shares of Adani Group companies after the Hindenburg report that led to a market crash in January.
The Enforcement Directorate has shared its findings with SEBI. Sources say probe agencies may investigate money laundering and other allegations against these companies.
(With inputs from agencies)
