New stock manipulation charges against Adani Group by OCCRP

OCCRP said its investigation found at least two cases where the “mysterious” investors bought and sold Adani stock through offshore structures. PicPTI

The Organised Crime and Corruption Reporting Project (OCCRP) on Thursday trained its guns at billionaire Gautam Adani's group, alleging hundreds of millions of dollars were invested in publicly traded group stocks through Mauritius-based ‘opaque' investment funds managed by partners of promoter family, charges the conglomerate denied vehemently.

The fresh allegations by the organisation come months after a US short seller wiped away close to $150 billion in value of Adani group stocks with allegations of accounting fraud, stock price manipulation and improper use of tax havens by the ports-to-energy conglomerate run by billionaire Gautam Adani. Adani Group has denied all Hindenburg allegations.

Citing review of files from multiple tax havens and internal Adani Group emails, OCCRP said its investigation found at least two cases where the "mysterious" investors bought and sold Adani stock through such offshore structures. The two men, Nasser Ali Shaban Ahli and Chang Chung-Ling, who OCCRP claimed have long-time business ties to the Adani family and also served as directors and shareholders in Group companies and firms associated with Gautam Adani's elder brother Vinod, "spent years buying and selling Adani stock through offshore structures that obscured their involvement - and made considerable profits in the process." The documents "show that the management company in charge of their investments paid a Vinod Adani company to advise them in their investment", it alleged.

Guardian reports

The Guardian reported that associates of the Adani family may have spent years discreetly acquiring stock in the Adani Group's own companies, eventually becoming one of India's largest and most powerful businesses. "New documents obtained by the OCCRP and shared with the Guardian and the Financial Times, reveal for the first time the details of an undisclosed and complex offshore operation in Mauritius - seemingly controlled by Adani associates - that was allegedly used to support the share prices of its group of companies from 2013 to 2018," reported The Guardian.

‘Recycled allegations'

Adani in a statement categorically rejected the "recycled allegations", calling them "yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report".

"These claims are 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. An independent adjudicating authority and an appellate tribunal had both confirmed that there was no over-valuation and that the transactions were in accordance with applicable law. The matter attained finality in March 2023 when the Supreme Court of India ruled in our favour. Clearly, since there was no over-valuation, there is no relevance or foundation for these allegations on transfer of funds," it said.

AAP seeks JPC probe

The Arvind Kejriwal-led Aam Aadmi party said a Joint Parliamentary Committee (JPC) should be set up to probe the charges against the Adani Group. "I urge the apex court to take cognisance of the OCCRP report and take strictest action against Adani," AAP leader Sanjay Singh told a press conference.

"The SEBI cannot probe the allegations against the Adani Group, because the matter is related to Narendra Modi's closest friend, Gautam Adani," the Rajya Sabha MP said. AAP's national spokesperson Reena Gupta demanded that a JPC be constituted for a thorough probe in the matter, "because it is clear that neither the SEBI nor any other agency" will be able to investigate the allegations against the Adani Group.

CPI (M) issues statement

"Fresh evidence has emerged about the Adani Group's manipulation of stock prices of its companies to inflate their value and assets. Adani's links with Prime Minister Modi have so far ensured that the regulatory authorities do not take any action against the widespread fraud and manipulation of the stock market," the Communist Party of India (Marxist) said in a statement. "The report also shows that the SEBI was looking into the matter of offshore funding of Adani companies in 2014 but had closed the enquiries subsequently. The fresh evidence necessitates a serious probe and the Supreme Court has to step in to ensure that there is no cover up," the Left party added.

Congress attacks government

Congress general secretary Jairam Ramesh questioned the role of market regulator SEBI in properly investigating the role of shell companies linked to the Adani Group.

"Despite the Modi government's best efforts, the truth will not stay suppressed forever. However, the full story about the flow of benami funds into the Adani Group, how foreign citizens came to play a role in critical national infrastructure and how PM (Narendra) Modi ‘violated rules, regulations and norms to enrich his close friends' can only be revealed by a JPC," he alleged.

Ramesh said "questions remain about SEBI's role. Did the obvious conflict of interest revealed by the association of past SEBI chairpersons with the Adani Group play a role in SEBI's inability to properly investigate these shell companies".

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