Adani Group’s 413-page rebuttal to allegations of fraud hasn’t convinced investors.
In a sharp response to Adani’s rebuttal, Hindenburg said the company had failed to address 62 of the 88 specific questions it had raised about its operations and internal governance.
“Fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation we raised,” Hindenburg said.“To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future. We also believe India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation,” the firm said.
Last week, Hindenburg said it had “uncovered evidence of brazen accounting fraud, stock manipulation and money laundering at Adani, taking place over the course of decades.” The firm said its findings were based on a two-year investigation. Hindenburg said it had identified a network of shell companies in tax havens operated by Adani family members and close business associates that were allegedly used to inflate the corporation’s earnings.
Adani’s personal wealth has taken a major hit since Hindenburg’s allegations surfaced. The 60-year-old has lost nearly $28 billion on paper since the start of the year and fallen from third to seventh on Bloomberg’s list of the world’s richest individuals.
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