Gautam Adani, a billionaire from an Indian family secretly invested millions of dollars in the Indian stock market, by purchasing its own shares. This action declared the remarkable growth in the stock values of Adani Group. Based on offshore financial documents, individuals linked to the Adani family had spent an extended period in acquiring shares in the Adani Group to become a significant and influential corporation in India. By 2022, Gautam Adani, the founder, had reached the position of world’s third wealthiest individual, with a net worth of $120 billion.
During Modi’s leadership, the Adani Group secured profitable state contracts encompassing ports, power plants, electricity, coal mines, highways, energy parks, slum redevelopment, and airports. Remarkably, in a few instances, regulatory changes were introduced, enabling the Group to grow within sectors like airports and coal. As a result, the Adani Group’s stock valuation accelerated from approximately $8 billion in 2013 to $288 billion by September 2022.
Hindenburg had declared corporate fraud and the manipulation of stock prices at the conglomerate. The Adani Group denied the Hindenburg allegations, which sweft the market value of the group to USD 150 billion at its lowest point and Vinod Adani stated that the Gautam Adani has the prime spot on the world rich list, “no role in the day to day affairs” was assigned to him in the company.
The Organised Crime and Corruption Reporting Project (OCCRP) said that the Hindenburg documents revealed details about the complex offshore operation in two Mauritius-based funds company managed by the partners of the promoter family to support the share prices of Adani Group from 2013 to 2018 – a period in which the conglomerate saw a spectacular rise to become the largest businesses in India.
After the release of the Hindenburg report, several questions were raised against Prime Minister Narendra Modi, as he was closely associated with Adani Group. The conglomerate stated that their existing response is accessible on their website to the Hindenburg report. They emphasized that the allegations against the Adani Group and its promoters would affect their credibility or foundation, and they vehemently dismissed the claims.
As per the letter discovered by the OCCRP and reviewed by The Guardian, it was observed that the Securities and Exchange Board of India (SEBI) received information in the year 2014 regarding the questionable stock market activities that involved the Adani Group. However, due to the upcoming elections, the regulatory body’s attention to the matter came to wane.
