Hindenburg Research on Monday reiterated its allegations on the Adani group, saying the Indian conglomerate is a fraud, following a 413-page response to the short seller’s original research report by the Gautam Adani-led firm.
Adani’s response was to say that the Hindenburg Report was a “systematic attack” on India, its institutions and growth story, and the allegations were “nothing but lies”. Hindenburg, in his response to Adani’s response, said that the group, “tried to deflect attention from the core issues and instead fueled a nationalistic narrative, claiming that our report was a “planned attack on India”.
In short, the Adani group has sought to combine its tremendous rise and the wealth of its chairman, Gautam Adani, with India’s success.
In response to Adani’s 413-page reply, Hindenburg says, “India’s future is being stopped by the Adani group, which has wrapped itself in the Indian flag while systematically looting the country.”
In response to Adani’s 413-page reply, Hindenburg says, “India’s future is being stopped by the Adani group, which has wrapped itself in the Indian flag while systematically looting the country.”
Disagreeing with Adani’s claim that the report was an attack on India, Hindenburg said, “We believe that India is a vibrant democracy and a rising superpower with an exciting future. We also believe that India’s future is being promoted by the Adani Group.” is being stopped, which has draped itself in the Indian flag while systematically looting the country.
We also believe that fraud is fraud, even if it is committed by one of the richest men in the world.” The short seller claimed that even in the 413-page reply, the Adani group largely affirmed either or attempted to sidestep its findings.” Our report asked 88 specific questions to the Adani Group. In response, Adani failed to answer 62 of them specifically. Instead, it focused mainly on categories put the questions together and provide a normalized deflection,” it said.
The research firm also said it has presented extensive evidence that Vinod Adani’s offshore shell entities have been used for stock parking/stock manipulation or engineering Adani’s accounting. “Many of our questions focused on both the nature of these transactions and the lack of disclosure regarding the apparent conflicts of interest involved. In response, Adani did not dispute the existence of these transactions and did not attempt to explain their apparent irregularities. No effort made,” it said.
In its response, Hindenburg Research also described as ‘telling’ Adani’s lack of direct and transparent answers to questions about the source of the billions of dollars flowing from offshore shale entities linked to Vinod Adani through the Adani Group. It said Adani’s response claimed ignorance as it said the group was neither aware nor needed to be aware of its ‘source of wealth’.
The group also said it was “not in a position to comment on … allegations on Vinod Adani’s business dealings and transactions. In other words, we are expected to believe that Gautam Adani knows Don’t know why his brother Vinod lent huge sums of money to Adani entities, and don’t know where the money came from.”