"Malicious and manipulative...": Adani Group and SEBI Dismiss Claims made in the Hindenburg Report

The Adani Group has strongly denounced the latest allegations made in the Hindenburg report, calling them "malicious and manipulative." The company rejected the claims stating that is a deliberate attempt to draw predetermined conclusions for personal gain, disregarding facts and legal standards.

A spokesperson for the Adani Group clarified that the company's overseas holding structure is fully transparent and disclosed in public documents. They also highlighted that Anil Ahuja, mentioned in the allegations, was a nominee director of 3i investment fund for Adani Power and later a director of Adani Enterprises until 2017. The Group asserted that it has no commercial relationship with the individuals or issues mentioned in the allegations and remains committed to transparency and legal compliance.

In a recent stock exchange filing, the Adani Group described the allegations as recycled and previously debunked, emphasizing that they had been thoroughly investigated and dismissed by the Supreme Court of India in January 2024. The Group labeled these claims as red herrings from a discredited short-seller who has shown contempt for Indian laws.

SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch also rejected the allegations from Hindenburg Research, calling them a character assassination attempt. They noted that SEBI had already taken enforcement action and issued a show-cause notice to Hindenburg last month. The Buchs expressed disappointment that Hindenburg had responded with personal attacks rather than addressing the regulatory concerns.

SEBI had previously accused Hindenburg and its founder Nate Anderson of violating regulations concerning fraudulent and unfair trade practices, as well as SEBI's code of conduct for research analysts. This situation has intensified scrutiny on Hindenburg, with the US Securities and Exchange Commission (SEC) also tightening oversight on short-sellers.

The Association of Mutual Funds in India (AMFI) criticized Hindenburg for undermining confidence in the Indian capital markets and SEBI’s leadership. AMFI warned that such actions could create unnecessary obstacles for India's rapidly growing economy and undermine the country’s economic progress.

The Buchs clarified that their investment in question was made in 2015 while they were private citizens living in Singapore, well before Madhabi Buch joined SEBI. They stated that the investment decision was influenced by personal connections and did not involve Adani Group securities. They reiterated that the fund did not invest in Adani Group companies.

The Hindenburg Research stoked a political storm. Congress leader Rahul Gandhi had questioned the integrity of SEBI in light of the allegations, but BJP leader Amit Malviya condemned his remarks. Malviya accused Gandhi of trying to undermine confidence in the Indian economy, despite the Supreme Court's finding of no regulatory failures regarding Hindenburg’s claims.

The latest Hindenburg report, released on August 10, alleged that SEBI Chairperson Madhabi Puri Buch and her husband were involved in Adani Group’s offshore funds, purportedly used in a money siphoning scandal.​