Adani Group, despite vehemently denying the recent allegations put forth by the Organised Crime and Corruption Reporting Project (OCCRP), encountered a wave of sell-off pressure in early morning trading. The shares of all Adani Group companies quickly dipped into negative territory shortly after the opening bell of the stock market.
Diverse Group Stocks Affected: During the morning trading session, Adani Power shares suffered a decline of more than 3%, while Adani Transmission‘s share price plummeted by around 3.3%. Simultaneously, Adani Enterprises saw a drop of 2.50% in its share price. Adani Green Energy and Adani Total Gas also faced losses of approximately 2.25% during Thursday’s trading.
Opaque Investments Allegations: The fresh set of allegations put forth by OCCRP accuses the Adani Group of utilizing “opaque investments” through entities in Mauritius. The non-profit media organization uncovered two instances where investors engaged in the buying and selling of Adani stocks through offshore structures.
Adani Group’s Denial and Response: Adani Group swiftly refuted these claims made by OCCRP and issued a press statement before the Indian stock market‘s opening bell. The group labeled these news reports as an orchestrated attempt backed by Soros-funded interests and certain sections of the foreign media to revive baseless allegations similar to the Hindenburg report.
Clarification on Past Cases: The statement clarified that the allegations stem from cases over a decade ago when the Directorate of Revenue Intelligence (DRI) had investigated claims related to over invoicing, fund transfers abroad, related party transactions, and investments through Foreign Portfolio Investors (FPIs). Both an independent adjudicating authority and an appellate tribunal had affirmed that no over-valuation occurred, and the transactions were in compliance with relevant laws. The issue reached its conclusion in March 2023 when the Honorable Supreme Court of India ruled in favor of the Adani Group. The group emphasized that these allegations lack relevance or foundation due to the absence of over-valuation.
Questioning Motives: Adani Group suggested that these attempts to undermine its reputation are driven by motives aimed at driving down stock prices. The group indicated that these short sellers are currently under scrutiny by various regulatory bodies. Given that the Honorable Supreme Court and the Securities and Exchange Board of India (SEBI) are overseeing these matters, the group stressed the importance of respecting the ongoing regulatory process.
Maintaining Confidence in Legal Processes: The statement concluded by expressing complete faith in the legal due process and confidence in the quality of the group’s disclosures and corporate governance standards. In light of the circumstances, the group considered the timing of these news reports as suspicious, mischievous, and malicious. The group unequivocally rejected the entirety of these allegations as presented in the recent reports.
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