Adani Group again in big controversy, 2610 crores frozen in this country, but denied
#News Bureau September 13,2024
Over the past three years, Swiss authorities have seized USD 311 million (Rs 2,610.7 crore) of a key associate of the Adani Group for his role in money laundering, manipulation of the group’s shares in Indian markets and fraud. Swiss investigators suspect that the associate, Taiwanese resident Chang Chung-ling, is not the ultimate beneficial owner of the company under investigation but merely a front for the Adani Group. However, the Adani Group has said that the court order is not linked to them and does not mention them.
The Swiss court order dated August 9, 2024 was published on September 10, 2024. It said that the Adani Group is “suspected of involvement in illegal activities including money laundering and embezzlement.” An entity controlled by Chang Chung-ling invested substantial amounts of funds entrusted to them by the Adani Group in “opaque funds”. The order raised doubts that the funds were actually controlled by the Adani Group or its directors.
The Swiss court order, with damaging implications for India’s politically influential group, has confirmed that Chang Chung-ling has been under investigation in the European nation since December 2021. Although Chang, the company under investigation and the Adani Group are not explicitly named in the court order, they can be identified through several references, including the SEBI investigation and the Hindenburg report. Hindenburg Research has shared a link to Swiss media on X, where the full report can be read.
<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>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.<br><br>Prosecutors detailed how an Adani frontman invested in opaque…</p>— Hindenburg Research (@HindenburgRes) <a href=”https://twitter.com/HindenburgRes/status/1834265857515499620?ref_src=twsrc%5Etfw”>September 12, 2024</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js”
The Adani Group called the allegations “frivolous, irrational and absurd”. The group further said that the latest allegations are another attempt by the same group to damage its reputation and market value.
According to the Swiss media outlet’s report, the investigation, which dates back to 2021, showed significant financial activity linked to investments in offshore tax havens, including the British Virgin Islands (BVI), Mauritius and Bermuda, which notably owned Adani shares.
In a post on X, US-based short seller Hindenburg Research said, “Swiss authorities, in early 2021, seized more than $310 million in funds held in multiple Swiss bank accounts as part of a money laundering and securities fraud investigation against Adani. According to newly released Swiss criminal court records reported by Swiss media outlets, prosecutors detailed how an Adani frontman invested in opaque BVI/Mauritius and Bermuda funds that owned almost exclusively Adani shares.”
In January 2023, Hindenburg accused the Adani Group of stock-price manipulation, undisclosed related-party transactions, and violation of public shareholding norms. However, the group has denied all the allegations.
The short-seller alleged in an August 10 report that Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch and her husband Dhaval Buch had invested in offshore entities linked to funds backed by Vinod Adani, brother of billionaire Gautam Adani, citing information shared by a whistleblower. Buch and SEBI denied the allegations. After this, the Congress party made several serious allegations against Madhabi Puri Buch but she could not clearly refute the facts. SEBI employees held a silent protest over the various allegations against Madhabi Puri Buch.
