Swiss Authorities Freeze More Than $310 Million Linked to Adani Group: Report
Swiss authorities have frozen more than $310 million across six Swiss bank accounts in connection to a probe into alleged money laundering and securities fraud linked to the Adani Group. According to recently released Swiss criminal court records, also shared by Hindenburg Research on its X handle, the funds are reportedly tied to a frontman for billionaire Gautam Adani, chairman of the Indian conglomerate. This investigation, which began in 2021, predates the high-profile accusations made by Hindenburg Research, a US-based short-seller that has long targeted the Adani Group.
In a post on social media platform X, Hindenburg Research highlighted the probe, stating that it sheds light on the financial practices involving opaque offshore entities connected to the Adani Group. Swiss media outlet Gotham City also reported that the Geneva Public Prosecutor’s Office had been investigating alleged wrongdoing by the Indian conglomerate even before Hindenburg Research made its first allegations public.
“A ruling by the Federal Criminal Court (FCC) reveals that the Geneva Public Prosecutor’s Office was investigating alleged wrongdoing by the Indian conglomerate Adani well before activist investors from Hindenburg Research made the first accusations. More than $310 million belonging to an alleged front man for billionaire Gautam Adani is
sequestered in six Swiss banks. The Office of the Attorney General of Switzerland (OAG) took over the investigation after the case was revealed in the press,” Gotham City reports quoting court documents.
The investigation gained momentum as the Office of the Attorney General of Switzerland took over the case following media revelations. The funds are currently sequestered in six Swiss banks, linked to an alleged proxy for Adani. While the specifics of the case remain under wraps, the sheer volume of frozen assets indicates the seriousness of the accusations against the Adani Group.
The Adani Group first came under scrutiny in January 2023 when Hindenburg Research published a detailed report accusing the conglomerate of stock manipulation and accounting fraud over several decades. The report, which labelled Adani’s operations as “the largest con in corporate history,” claimed that the company used a network of offshore shell entities, primarily based in Mauritius, to engage in billions of dollars in undisclosed transactions. The accusations sent shockwaves through the Indian stock market, leading to a steep decline in Adani stocks and sparking widespread debate over corporate governance in India.
In August 2024, as the fallout from the initial report seemed to be settling, Hindenburg levelled new 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. According to whistleblower documents, the Buchs were involved in IPE Plus Fund 1, a Mauritius-registered offshore fund reportedly tied to Vinod Adani, Gautam Adani’s brother. The report suggested that this connection posed a significant conflict of interest, given Buch’s role as SEBI chairperson, a position responsible for overseeing financial regulation in India.
In response to these accusations, the Buchs strongly denied any wrongdoing, calling the allegations “baseless” and emphasising that their finances were fully transparent. They pointed out that all necessary financial disclosures had been submitted to SEBI over the years. The Buchs further stated that the accusations amounted to a character assassination, implying that Hindenburg’s report was a retaliatory move following SEBI’s enforcement actions against the firm.
Despite these denials, Hindenburg’s findings have raised concerns about SEBI’s impartiality, especially given the regulator’s relatively muted response to the Adani Group scandal. Although SEBI issued a show-cause notice to Hindenburg in mid-2024, accusing the firm of failing to properly disclose its short positions on Adani stocks, it has not taken significant action against Adani or the offshore funds linked to his companies. This has led to growing scepticism about SEBI’s ability to regulate India’s financial markets effectively.
