'A red herring': Adani Group scraps Hindenburg's fresh allegations

In a statement to the stock exchanges on Sunday, an Adani group spokesperson said the latest allegations by Hindenburg are malicious, mischievous, and manipulative

Adani Group has dismissed the latest allegations from the US-based short seller as a “red herring”. In a statement to stock exchanges on Sunday, a spokesperson for Adani Group described the new claims by Hindenburg Research as malicious, mischievous, and manipulative. The spokesperson accused Hindenburg of using publicly available information to draw pre-determined conclusions for personal gain, with blatant disregard for facts and the law.

“We completely reject these allegations against Adani Group, which are recycled discredited claims that have been thoroughly investigated, proven baseless, and already dismissed by the Supreme Court in January 2024,” the spokesperson said.

A statement reiterated that the company’s overseas holding structure is fully transparent, with all relevant details disclosed regularly in numerous public documents. Furthermore, Anil Ahuja was a nominee director of the 3i investment fund in Adani Power from 2007 to 2008 and later a director of Adani Enterprises (AEL) until 2017.

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“Adani Group has absolutely no commercial relationship with the individuals or matters mentioned in this calculated deliberate effort to malign our standing. We remain steadfastly committed to transparency and compliance with all legal and regulatory requirements,” the statement added.

According to the Hindenburg report released on Saturday, Ahuja is the founder and chief investment officer of the Mauritius-based IPE Plus Fund. The report claims that the IPE fund was structured two layers below the Global Opportunities Fund.

During the same period, Ahuja served as a director of AEL for three terms, totalling nine years, ending in June 2017, according to his biography and exchange disclosures. Prior to that, he was a director of Adani Power.

“For a discredited short-seller under the scanner for several violations of Indian securities laws, Hindenburg’s allegations are no more than red herrings thrown by a desperate entity with total contempt for Indian laws,” the spokesperson said.