Adani Group Faces Regulatory Scrutiny in the United States Following Short Seller’s Report
The US Attorney’s Office in Brooklyn has reportedly launched inquiries in recent months targeting institutional investors who possess substantial holdings in the Adani Group, a prominent conglomerate based in India. These inquiries, which have been confirmed by an individual familiar with the matter, indicate a further escalation of regulatory scrutiny surrounding the conglomerate’s operations.
US authorities have initiated an investigation into the representations made by the Adani Group to its American investors following the release of a critical report by a short seller. The report accused the conglomerate of engaging in the manipulation of share prices through the use of offshore companies.
US Authorities Investigate Adani Group’s Communications with Institutional Investors, Joined by SEC Probe
The US Attorney’s Office in Brooklyn, New York, has reportedly initiated inquiries in recent months targeting institutional investors with significant holdings in the Adani Group, an Indian conglomerate. These inquiries, focused on the information provided by the Adani Group to investors, mark a significant development in the ongoing regulatory scrutiny. In parallel, the Securities and Exchange Commission (SEC) is also conducting a similar investigation.
The recent requests for information by the US Attorney’s Office in Brooklyn, New York, directed towards institutional investors with significant holdings in the Adani Group, indicate preliminary inquiries rather than an immediate initiation of criminal or civil proceedings. It is important to note that law enforcement agencies frequently open investigations that may not ultimately result in legal action.
The Adani Group, one of India’s largest conglomerates led by billionaire Gautam Adani, is facing escalating scrutiny following allegations of stock manipulation and accounting fraud in a report by short seller Hindenburg Research. The situation has further intensified with the interest expressed by US authorities, along with existing regulatory probes within India.
As President Joe Biden welcomed Indian Prime Minister Narendra Modi to the White House, news of the inquiries into the Adani Group emerged, adding a notable backdrop to their meeting. The close connection between Adani and Modi, both hailing from the western Indian state of Gujarat, coupled with the parallel trajectories of Adani’s rapid growth and Modi’s political rise, lend significance to the ongoing scrutiny surrounding the conglomerate.
Adani Group, headquartered in Ahmedabad, India, has stated through a spokesperson that it is not aware of any subpoenas being issued to investors. The conglomerate denies knowledge of such legal requests made by US authorities in relation to their ongoing inquiries. This response suggests that the Adani Group may not have received formal notifications regarding the subpoenas or may be awaiting official confirmation. It remains to be seen how the investigations will progress and how the Adani Group will cooperate with the authorities as more information becomes available.
