Industrialist Gautam Adani
Shares of seven group companies closed lower on Friday amid the seizure of several Swiss accounts of a person allegedly linked to the Adani Group. Swiss authorities have seized several Swiss bank accounts of a Taiwanese resident as part of a money laundering probe. (Rs 2.61 billion) were seized. Authorities suspect that the person may be a front for the Adani Group. However, the group has strongly denied the allegation and said it was not involved in any Swiss legal proceedings nor had any of its accounts been seized.
Shares of Adani Group companies fall
Amid this news, Adani Power shares on BSE fell 2.73 per cent, Adani Energy Solutions fell 2.42 per cent, Adani Ports fell 1.37 per cent, Adani Green Energy fell 1.17 per cent, Adani Enterprises fell 0.76 per cent, Adani Total Gas fell 0.55 per cent and Adani Wilmar fell 0.37 per cent. was recorded. However, three group companies closed with gains. ACC shares rose 1.94 per cent, NDTV rose 1.01 per cent and Ambuja Cements rose 0.01 per cent. At one point during trading, Adani Power shares had fallen 3.20 per cent and Adani Energy fell 2.75 per cent. Adani Green fell 1.53 per cent and Adani Ports fell 1.51 per cent. But these stocks have since largely recovered.
Hindenburg had published
Swiss media outlet Gotham City said in its report that Swiss investigators suspect Taiwanese Chang Chung-ling is not the ultimate beneficiary of the company under investigation, but is merely a front. However, the group strongly denied the allegation and said it was not involved in any Swiss legal proceedings nor had any of its accounts been seized.
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Hindenburg Research, an American research and investment firm, said in a post on the social media platform that an amount of more than $31 million has been seized from bank accounts.
This investigation took place in early 2021. Prosecutors detailed how an individual associated with Adani invested in opaque funds in BVI/Mauritius and Bermuda, Hindenburg said, citing the report. The majority of Adani shares were in this fund. Hindenburg Research prepared a report last year targeting the Adani group, according to which the market value of the group’s listed companies decreased by $150 billion in the following weeks.
The Adani Group’s response
Meanwhile, the Adani Group has called these allegations baseless and said it has no connection with any legal proceedings in Switzerland. The group said in the statement that “We categorically reject these baseless allegations. Adani Group is not involved in any Swiss legal proceedings and no authority has seized accounts of our companies.”
According to the statement, even in this order the Swiss Court did not mention our group companies, nor have we received any request for clarification or information from any authority or regulatory body. We reiterate that our foreign participation structure is transparent and complies with all relevant laws.
Adani Group said the allegations are clearly nonsensical, irrational and absurd. We have no hesitation in saying that this is yet another well-planned attempt by the same people working in unison to cause irreparable damage to the reputation and market value of our Group. The statement said Adani Group is fully committed to transparency and compliance with all legal and regulatory requirements.
