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

US-based short seller Hindenburg Research, that sent shockwaves through markets after its disruptive report concerning the Adani Group, has reacted after the Organised Crime and Corruption Reporting Project (OCCRP) on Thursday trained its gun at billionaire Gautam Adani's Group.

"Finally, the loop is closed. The Financial Times and OCCRP report that offshore funds owning at least 13 per cent of the free float in multiple Adani stocks were secretly controlled by associates of Vinod Adani, masking the relationship with 2 sets of books," Hindenburg Research said on X (formerly Twitter).

The Organised Crime and Corruption Reporting Project (OCCRP) on Thursday targeted 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.

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

The fresh allegations by an organisation, funded by likes of George Soros and Rockefeller Brothers Fund, come months after the 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's 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 longtime business ties to the Adani family and have also served as directors and shareholders in Group companies and firms associated with Gautam Adani's elder brother Vinod Adani, "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.

Meanwhile, Adani in a statement categorically rejected what it called as "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.

Also Read: 'Concerted bid by George Soros-funded interests': Adani Group rejects OCCRP report