After Hindenburg, OCCRP says Adani family's partners used 'opaque' funds to invest in its stocks; top 12 points

After the Hindenburg Research's report on Adani Group operations, the Organized Crime and Corruption Reporting Project (OCCRP) has levelled fresh allegations against the conglomerate. The non-profit news organisation alleged "opaque" Mauritius funds were used to funnel substantial investments into the publicly traded stocks of the Adani Group. In the process, it has masked the involvement of business partners associated with the Adani family.

Here are the top 12 points on the issue:  

1. George Soros-backed OCCRP alleged that Adani Group’s publicly traded stocks saw the movement of millions of dollars via ‘opaque’ Mauritius funds that ‘obscured’ the involvement of alleged partners of the Adani family.

2. Citing a review of files from multiple tax havens and internal Adani Group emails, OCCRP said its probe has found at least two cases where the investors bought and sold Adani stock through such offshore structures.

3. The report has named two individual investors who made the investments it investigated for its article. The article said Nasser Ali Shaban Ahli and Chang Chung-Ling were "longtime business partners" of the Adani family.

4. The media organization said there was no evidence Chang and Ahli's money for their investments came from the Adani family, but said its reporting and documents - including an agreement, corporate records and an email - showed there "is evidence" that their trading in Adani stock "was coordinated with the family".

5. "The question of whether this arrangement is a violation of the law rests on whether Ahli and Chang should be considered to be acting on behalf of Adani 'promoters,' a term used in India to refer to the majority owners of a business," OCCRP said.

Also read: More allegations against Adani Group: Report says Adani family's partners used 'opaque' funds to invest in group stocks

Watch: Adani Enterprises, Adani Green, Adani Total Gas, other group shares fall after OCCRP report alleges family-controlled entities bought own shares; Hindenburg 2.0 for Adani Group? Check details

6. In an interview with a reporter from the Guardian, OCCRP said Chang said he knew nothing about any secret purchases of Adani stock.

7. The report comes at least eight months after US-based short-seller Hindenburg Research accused the ports-to-energy conglomerate of improper business dealings, including the use of offshore entities in tax havens.

8. Refuting the allegations, the Adani group on Thursday categorically rejected the "recycled allegations" of OCCRP and said the news reports appear to be yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report.

9. “We categorically reject these recycled allegations. These news reports appear to be yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report. In fact, this was anticipated, as was reported by the media last week,” Adani Group said.

10. The OCCRP is a global network of investigative journalists focused on exposing corruption. It is funded by organizations including George Soros' Open Society Foundation (OSF) and Rockefeller Brothers Fund.

11. Adani group stocks have been under pressure since Thursday morning. The combined m-cap of 10 listed Adani group companies fell Rs 35,624 crore to Rs 10,49,044.72 crore against Rs 10,84,668.73 crore on Wednesday.

12. Its flagship company, Adani Enterprises', m-cap fell by Rs 9,570.31 crore while that of Adani Green Energy's by Rs 6,200 crore. Adani Ports and Adani Power was Rs 5,000-5,300 crore of m-cap erosion. Adani Energy Solutions took a nearly Rs 3,000 crore m-cap hit while the market value of Ambuja Cements Declined Rs 2,680 crore.

 

Also read: Adani stocks fall; group m-cap sees Rs 35,600 crore erosion. Adani Enterprises, Adani Green lead losers

Also read: 'Finally, the loop is closed': Hindenburg on ‘hidden foreign investors’ allegations against Adani Group by OCCRP

Also read: AEL, Adani Power, Adani Green, Adani Total Gas shares: 10 Adani stocks fall after OCCRP report; group replies