“Preposterous, Irrational, Absurd”: Adani Group On Hindenburg Allegations Of Swiss Banks Fund Freeze

Responding to a report in a Swiss media outlet, the Adani Group called the allegations an “orchestrated and egregious attempt by the same cohorts acting in unison” to irreversibly damage the reputation and the market value of the conglomerate.

Rejecting the allegations as “baseless,” the Adani Group stated that it has “no involvement” in any Swiss court proceedings and nor have any of the company accounts been subjected to sequestration by any authority.

Read Also: Swiss Authorities Freeze More Than $310 Million Linked to Adani Group: Report

In an X post, the US-based short seller Hindenburg Research claimed that Swiss media outlet ‘Gotham City’ accessed the Geneva Public Prosecutor’s Office and had been investigating alleged wrongdoing by the Indian firm even before Hindenburg made its first allegations public.

“Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021,” stated the short seller. It was also alleged that the funds are reportedly tied to a frontman for billionaire and chairman Gautam Adani himself.

In a statement, the Adani Group, dismissing the “absurd” allegations, reiterated that their overseas holding structure is “transparent, fully disclosed, and compliant” with the relevant laws.

While the details of the case remain unknown, the sheer volume of frozen assets suggests the seriousness of the accusations raised against the Indian conglomerate.

The Adani Group has been under scrutiny ever since Hindenburg published an expansive report in January 2023 accusing the firm of stock manipulation and accounting fraud over decades. Calling it “the largest con in corporate history,” the report claimed that the Indian conglomerate had engaged in billions of dollars in undisclosed transactions via a network of offshore shell entities.

Right when the shockwaves (Adani stocks witnessed a sharp decline) appeared to settle, the US short seller, in August this year, came back with fresh allegations against the Securities and Exchange Board of India (SEBI) and its chairperson, Madhabi Puri Buch. The research firm claimed that Buch and her husband held stakes in offshore funds linked to Adani’s alleged money-laundering activities. The allegations raised a significant conflict of interest since Buch serves as the SEBI chairperson, a position responsible for overseeing financial regulation in India.

Read Also: “Maintained Her Complete Silence For Weeks”: Hindenburg On New Allegations Against SEBI Chief

Buch and her husband denied the “baseless” allegations and highlighted that all required financial disclosures were submitted to SEBI and in turn accused Hindenburg of character assassination. SEBI issued a show-cause notice to Hindenburg in mid-2024, accusing the firm of failing to properly disclose its short positions on Adani stock.

However, it has not taken strict action against Adani or the offshore funds linked to his companies, leading to doubts raised over the regulatory body’s power over India’s financial markets.