BackHindenburg's allegations against Gautam Adani's brother Vinod Adani. 8 points
Targeting Gautam Adani's elder brother Vinod Adani, Hindenburg Research said the conglomerate has failed to answer about the source of funds flowed from Vinod Adani-associated offshore shell entities
PremiumAmid the Hindenburg and Adani Group row, the latter shared a 413-page detailed rebuttal on Sunday, claiming it has complied with all the local laws and had made the necessary regulatory disclosures.
Subsequently, Hindenburg released its statement wherein the US-based short seller said that in terms of the sentence, Adani's 413-page response, only 30 pages focused on issues related to its 24 January report.
"The remainder of the response consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables.
Hindenburg’s 24 January report, constituting the research firm’s opinions and investigative commentary where readers are advised that use of the report is at their own risk, details a web of Adani-family-controlled offshore shell entities in tax havens, from the Caribbean, Mauritius, and the United Arab Emirates. It claims these were used to facilitate corruption, money laundering, and taxpayer theft while siphoning money from the group’s listed companies.
Targeting Gautam Adani's elder brother Vinod Adani, Hindenburg Research said the conglomerate has failed to answer about the source of funds flowed from Vinod Adani-associated offshore shell entities through the Adani Group.
Charges Hindenburg has levelled against Gautam Adani's brother Vinod Adani:
- The US short seller has mentioned the vast "labyrinth of offshore shell entities" directed by or associated with Vinod Adani. Hindenburg said that these entities included 38 entities in Mauritius, along with others in the UAE, Cyprus, Singapore, and various Caribbean islands.
- The US firm said that these entities have been used for:
- stock parking/stock manipulation
- engineering Adani's accounting
- Further, the Hindenburg Research report has also questioned the source of funds for suspect transactions between Adani Group entities and Vinod Adani-associated entities.
- A large part of the report was dedicated to outlining a web of opaque offshore entities, often with a connection to Adani's elder brother Vinod Adani, that seemed to hold billions of US dollars worth of stock in Adani-listed companies.
- The report included a question relating to Adani’s statement to regulators, claiming that Vinod Adani was (emphasis added) “not at all having any involvement in any Adani Group of companies".
- The question centered around whether the Adani Group had been forthright to the government about its dealings with Vinod Adani.
- Adani Group flagrantly misled government officials on one of the most important issues our report raised: its relationship with Vinod Adani, Hindenburg claimed.
- The report has alleged that listed Adani companies have paid ₹63 billion to private contractor PMC Projects over the past 12 years. "We noted that the entity is controlled by the son of a close associate of Vinod Adani," the Hindenburg report stated.
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