Adani Group denies Hindenburg’s allegation of $310 mn Swiss Bank funds freeze

PTC News Desk: In a fresh wave of controversy, U.S.-based short seller Hindenburg Research has alleged that Swiss authorities have frozen more than $310 million in funds spread across multiple bank accounts linked to the Adani Group as part of an ongoing investigation into money laundering and securities fraud. This claim, based on local Swiss reports, suggests that the investigation has been in progress since at least 2021.

In a post on X (formerly known as Twitter), Hindenburg stated, “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.”

However, the Adani Group, one of India’s largest conglomerates, has vehemently denied these claims. In a strongly worded statement, a company spokesperson refuted the allegations, emphasizing that the group is not involved in any Swiss court proceedings and none of its accounts have been frozen by any authority.

“We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority. Furthermore, even in the alleged order, the Swiss court has neither mentioned our group companies nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws,” the spokesperson said.

The company further condemned the claims made by Hindenburg, calling the allegations “preposterous, irrational, and absurd.” The Adani Group suggested that this is yet another orchestrated attempt to tarnish its reputation and damage its market value.

“We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value,” the statement read.

Hindenburg’s post referred to an article from Swiss media outlet Gotham City, which reported that an order from the Federal Criminal Court (FCC) of Switzerland revealed that the Geneva Public Prosecutor’s office has been investigating the Adani Group for alleged financial misconduct well before Hindenburg made its initial accusations in January 2023.

According to the report, over $310 million linked to an alleged frontman for billionaire Gautam Adani was frozen in six Swiss banks. The report also claimed that the Swiss Office of the Attorney General (OAG) has since taken over the investigation after it gained public attention.

The accusations follow a series of claims Hindenburg made in January 2023, when the short seller accused the Adani Group of stock market manipulation and financial malpractices. At the time, the report sent shockwaves through the Indian financial markets, with shares of Adani companies seeing a sharp decline. Billionaire Gautam Adani, the founder and chairman of the conglomerate, has consistently denied these allegations, asserting that Hindenburg’s claims are unfounded and malicious.

As the controversy continues, the Adani Group has maintained that its financial practices are transparent, compliant with all laws, and that there is no basis for the claims made by Hindenburg or any Swiss authority. The group’s statement reaffirms its commitment to fighting what it perceives as an orchestrated campaign aimed at destabilizing its business operations and market standing.

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