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Business News/ Companies / News/  'False and baseless', Mauritius minister rejects Hindenburg claims on Adani group

'False and baseless', Mauritius minister rejects Hindenburg claims on Adani group

Rejecting the claims made by Hindenburg in its report of Adani group, a Mauritian minister called the short-sellers claims of the presence of shell companies in Mauritius to be ‘false and baseless’

Mauritious minister has debunked Hindenburg report on Adani (Bloomberg)Premium
Mauritious minister has debunked Hindenburg report on Adani (Bloomberg)

Rejecting the claims made by Hindenburg Research, Mauritian Parliamentarian, called the claims of the presence of Shell companies of the Adani Group in Mauritius, to be “false and baseless". The short-seller, in its report, alleged the presence of Adani Group's shell companies in Mauritius, UAE, and the Caribbean islands.

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The Mauritian minister was informed by the Financial Services Commission of the report published by Hindenburg Research over the presence of Adani group shell companies in the country. Shell companies are not allowed in Mauritius, or global companies have to meet the legal requirements set by the Mauritian government, said the parliamentarian in his address.

Also Read: Adani revives fundraising plan after aborted FPO in February

"At the outset, I wish to inform the House that the allegations of the presence of Shell companies in Mauritius are false and baseless. According to law, Shell Companies are not allowed in Mauritius or global business companies licensed by the Financial services providers have to meet substance requirements as per section 21 of the financial service activities," he added.

Also Read: Adani Green, Transmission and Ports lose endorsement of UN-backed climate group; firm responds

According to Mauritian law, the minister said a company from overseas needs to carry out its core income-generating activities in, or from, Mauritius, as required under the Income Tax Act. The second clause of the act mandates the company to be managed and controlled by the country and be administered by a management company.

The next clause mandates a minimum of two native directors from Mauritius. Notably, Hindenburg Research released a report on the Adani group claiming brazen stock manipulation over the decades. The report stirred a political storm in India. Moreover, the news led to a nearly $ 51 billion sell-off in shares of the port-to-energy Indian conglomerate.

The US-based short seller noted that the core allegations of its report -- “focused on numerous suspect transactions with offshore entities were left completely unaddressed."

(With ANI inputs)

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Published: 11 May 2023, 09:18 AM IST
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