In a new report published by the Organized Crime and Corruption Reporting Project (OCCRP), the Adani Group has been accused of insider trading. The report, which was also co-published by the Financial Times and The Guardian, alleges that millions of dollars were invested in Adani Group stocks through opaque Mauritius funds.

Hindenburg research Reacts on the same on their twitter.

The report claims that these funds were controlled by business partners of the Adani family, and that they were used to manipulate the share price of Adani Group companies. The report also alleges that the Adani Group engaged in other forms of financial irregularities, such as overpaying for imported power generation equipment.

The allegations against the Adani Group have raised concerns about the transparency and accountability of the company. The Adani Group is one of the largest conglomerates in India, and it has close ties to the government. The allegations have cast a shadow over the company’s reputation, and they could have a negative impact on its business prospects.

The OCCRP report is a serious allegation, and it will be important to see how the Adani Group responds. The company has a history of denying allegations, but the evidence presented in the OCCRP report is credible and should not be ignored. If the allegations are true, then the Adani Group should be held accountable for its actions.

The report has also raised questions about the role of the Mauritius financial system in facilitating insider trading and other financial irregularities. Mauritius is a popular destination for foreign investors, but its financial regulations are relatively weak. This has made it a haven for money laundering and other financial crimes.

The OCCRP report is a reminder of the need for greater transparency and accountability in the Indian corporate sector. The government should take steps to strengthen the financial regulations and to crack down on financial crimes. The public also has a role to play in demanding transparency and accountability from companies like the Adani Group.

Financial Times

The Financial Times article titled “Secret paper trail reveals hidden Adani investors” reports on a new investigation by the Organized Crime and Corruption Reporting Project (OCCRP) into the Adani Group, a multinational conglomerate based in India. The investigation, which was also co-published by The Guardian, found that two mysterious foreign investors, Nasser Ali Shaban Ahli from the United Arab Emirates and Chang Chung-Ling from Taiwan, secretly controlled large stakes in the Adani Group through opaque investment funds based in the island nation of Mauritius.

The OCCRP investigation alleges that these investments were made in possible violation of Indian law, which requires that at least 25% of the stock of any publicly traded company be available to the public for purchase. The investigation also found that the two investors had close ties to the Adani family, and that they may have used their positions to manipulate the share price of Adani Group companies.

The Adani Group has denied the allegations, calling them “baseless and defamatory”. The group has said that it will take legal action against the OCCRP and the other media outlets that published the report.

The OCCRP investigation is the latest in a series of allegations that have been leveled against the Adani Group in recent years. In January 2023, the short seller Hindenburg Research published a report that accused the Adani Group of stock manipulation and accounting fraud. The Adani Group denied these allegations as well.

The Financial Times article concludes by noting that the OCCRP investigation has “shed new light on the opaque financial dealings of the Adani Group” and that it “raises serious questions about the company’s governance and the regulatory environment in India.”

The article also highlights the importance of investigative journalism in holding powerful companies accountable. The OCCRP investigation was only possible because of the hard work of journalists who were willing to dig into the complex financial records of the Adani Group. This type of investigative journalism is essential to ensuring that companies are transparent and accountable to the public.

In addition to the above, here are some other key takeaways from the OCCRP report:

  • The report alleges that the Adani Group used opaque Mauritius funds to invest in its own stocks. This allowed the company to manipulate the share price and profit from insider trading.
  • The report also alleges that the Adani Group overcharged its own foreign subsidiary by as much as $1 billion for imported power generation equipment. This money was then allegedly used to fund the company’s opaque Mauritius funds.
  • The report’s findings raise serious questions about the transparency and accountability of the Adani Group. The company has a history of denying allegations, but the evidence presented in the OCCRP report is credible and should not be ignored.
  • The report also highlights the need for greater transparency and accountability in the Indian corporate sector. The government should take steps to strengthen the financial regulations and to crack down on financial crimes. The public also has a role to play in demanding transparency and accountability from companies like the Adani Group.