Adani terms Hindenburg allegations malicious, manipulative of selective public info

Says allegations are no more than red herrings thrown by desperate entity with total contempt for Indian laws

New Delhi: The Adani Group on Sunday termed US short-seller Hindenburg Research‘s latest allegations as malicious and manipulative of select public information, saying it has no commercial relationship with the Sebi Chairperson or her husband.

“The latest allegations by Hindenburg are malicious, mischievous and manipulative selections of publicly available information to arrive at pre-determined conclusions for personal profiteering with wanton disregard for facts and the law. We completely reject these allegations against the Adani Group which are a recycling of discredited claims that have been thoroughly investigated, proven to be baseless and already dismissed by the Hon’ble Supreme Court in January 2024,” the group said in a filing.

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Hindenburg on Saturday stated that Sebi head Madhabi Puri Buch and her husband invested in offshore entities that were allegedly part of a fund structure managed by India Infoline and in which Vinod Adani, Gautam Adani’s brother, also had investments.

These investments reportedly date back to 2015, well before Madhabi’s appointment as a whole-time member of SEBI in 2017 and the subsequent elevation as chairperson in March 2022.

It said Bermuda-based Global Opportunities Fund, which allegedly was used by entities connected to Adani Group to trade in shares of group companies, had sub-funds. Buch and her husband were investors in one of these sub-funds in 2015.

Citing “whistleblower documents”, Hindenburg said, Madhabi and her husband had stakes in both obscure offshore funds used in the Adani money siphoning scandal.

Sebi, it claimed, has “shown a surprising lack of interest in Adani’s alleged undisclosed web of Mauritius and offshore shell entities.”

Responding to the allegations, the Adani filing said: “It is reiterated that our overseas holding structure is fully transparent, with all relevant details disclosed regularly in numerous public documents.”

It went on to state that Anil Ahuja was a nominee director of 3i investment funds in Adani Power (2007-2008) and, later, a director of Adani Enterprises until 2017.

“The Adani Group has absolutely no commercial relationship with the individuals or matters mentioned in this calculated deliberate effort to malign our standing. We remain steadfastly committed to transparency and compliance with all legal and regulatory requirements,” it said.

Adani said for “a discredited short-seller under the scanner for several violations of Indian securities laws, Hindenburg’s allegations are no more than red herrings thrown by a desperate entity with total contempt for Indian laws.”