The Billionaire Entrepreneur Gautam Adani He ceased to be the world’s third-richest person after activist investment firm Hindenburg Research accused his conglomerate, Grupo Adani, of orchestrating fraud.
Through a report, Hindenburg indicated that the companies of said conglomerate, belonging to the richest man in Asia, was involved in “a brazen scheme of stock manipulation and accounting fraud for decades”.
A famous seller of the aforementioned company was the one who published the report accusing Adani of an alleged plan to manipulate the company’s share price. After that, Adani lost the title of the richest person in the world, which was left in the hands of the founder of Amazon, Jeff Bezos.
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In that vein, Adani Enterprises, the flagship of the Adani Group, was down more than 3% to 3,333 rupees ($40.77) last Wednesday, while Adani Ports fell more than 6.5% to 711 rupees. Other companies listed in the Adani Group also fared poorly, with shares in food company Adani Wilmar falling nearly 5%, Adani Power 4.7%, Adani Transmission 5.19%, Adani Total Gas a 4.77% and Adani Green Energy 3.55%.
The American investment group Hindenburg noted that “the moves pushed up the share prices of seven key listed companies in the Adani Group, which in turn helped boost the industrialist’s net worth by more than $100 billion in three years”. Along these lines, he pointed out that it would be the biggest fraud in corporate history.
The aforementioned report details a network of fictitious offshore entities controlled by the Adani family in tax havens, the Caribbean, Mauritius and the United Arab Emirates. He adds that these were used to facilitate corruption, money laundering and tax theft.
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For his part, the financial director of the Adani Group, Jugeshinder Singh, dismissed the Hindenburg report, stating that it is “a malicious combination of targeted misinformation and outdated, unsubstantiated and discredited accusations, which were tried and rejected by the highest courts in India”.
Source: Gestion
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