Adani Group is under scrutiny since the Hindenburg report published a report claiming that the Group had links with a labyrinth of offshore tax havens linked to Gautam Adani’s family and the firm's exposure to high debt was a concern, eroding $11 million in investors’ wealth. Now the US Attorney’s Office in Brooklyn, New York, has sent inquiries in recent months to investors with large holdings in the Adani Group. The inquiries are focused on what the Indian ports-to-power giant told them, as per the Bloomberg report.
The authorities are looking into the representations that Adani made to its American investors following short-seller Hindenburg’s report, Bloomberg reported.
India’s market watchdog in May had ‘drawn a blank’ in investigations into suspected violations in overseas investments in the Adani group and a Supreme Court-appointed panel said its ongoing pursuit of the case could be a ‘journey without a destination’.
The SEC also said that it does not comment on the existence or nonexistence of a possible investigation. The Eastern District of New York US Attorney’s office declined to comment on the report.
The news of inquiries emerged as President Joe Biden rolled out the red carpet for Indian Prime Minister Narendra Modi at the White House. Both Adani and Modi hail from the western Indian state of Gujarat, and the tycoon’s meteoric growth mirrors Modi’s own political journey in India’s top elected office.
Till now there has been no official statement on the inquiry from Adani group.
