By Shakir Husain
NEW DELHI, Jan 26 (NNN-Bernama) — India’s Adani Group said on Thursday it is considering legal action against US-based Hindenburg Research over a report that accuses the conglomerate of “brazen” market manipulation and accounting fraud.
Adani companies lost billions of dollars in market value after Hindenburg’s report was published on Tuesday.
“We are deeply disturbed by this intentional and reckless attempt by a foreign entity to mislead the investor community and the general public, undermine the goodwill and reputation of the Adani Group and its leaders, and sabotage the FPO (Follow-on Public Offering) from Adani Enterprises,” Adani Group said in a statement.
“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” it added.
The Indian group, headed by powerful billionaire Gautam Adani, said the report has affected its shareholders and investors.
“The maliciously mischievous, unresearched report published by Hindenburg Research on 24 Jan 2023 has adversely affected the Adani Group, our shareholders and investors. The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens,” the statement said.
Hindenburg Research said its two-year investigation found that “the INR 17.8 trillion (U.S. $218 billion) Indian conglomerate Adani Group has engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”
It also said “Adani family members allegedly cooperated to create offshore shell entities in tax-haven jurisdictions like Mauritius, the UAE, and Caribbean Islands, generating forged import/export documentation in an apparent effort to generate fake or illegitimate turnover and to siphon money from the listed companies.”
— NNN-BERNAMA