New Delhi, January 30
US short seller Hindenburg Research has rejected the Adani Group’s claim that its report was an attack on India, saying a “fraud” cannot be obfuscated by nationalism or an inflated response that ignored the response to key allegations.
Commenting on the 413-page response that the Adani Group published on Sunday night in response to its report, Hindenburg said he believed that India is a vibrant democracy and an emerging superpower with an exciting future and that it is the Adani Group that is holding it back. systematic looting.”
Hindenburg stood by his report last week that said his two-year investigation found the Adani Group “engaged in a brazen scheme of stock manipulation and accounting fraud over the course of decades.”
Hindenburg said the response from the conglomerate run by Asia’s richest man, Gautam Adani, “opened with the sensationalist claim that we are the ‘Madoffs of Manhattan.'”
He said Adani claimed they had committed a “gross violation of applicable securities and currency laws.” “Although Adani did not identify any such laws, this is another serious allegation that we categorically deny,” she said.
The Adani Group on Sunday night compared the damning accusations made by Hindenburg to a “calculated attack” on India, its institutions and its history of growth, saying the accusations are “nothing more than a lie.”
He said the report was prompted by “an ulterior motive” to “create a false market” to allow the US company to make financial gain by dragging share prices lower. The document is “a malicious combination of targeted misinformation and hidden facts related to unsubstantiated and discredited allegations to further an ulterior motive,” she said.
“This is fraught with conflicts of interest and is only intended to create a fake stock market to allow Hindenburg, a well-known short seller, to make massive financial gains through illicit means at the expense of countless investors,” he said, questioning the Hindenburg’s credibility and ethics.
Hindenburg responded by saying that the Adani Group “predictably tried to divert attention from substantive issues and instead stoked a nationalist narrative.”
“The Adani Group has tried to combine its meteoric rise and the wealth of its chairman, Gautam Adani, with the success of India itself,” he said.
“We disagree. To be clear, we believe that India is a vibrant democracy and an emerging superpower with an exciting future. We also believe that the future of India is being held back by the Adani Group, which has wrapped itself in the Indian flag while systematically looting the nation.” Stating that a “fraud is fraud even when perpetrated by one of the richest people in the world,” he said Adani’s ‘413 page’ response included only about 30 pages focused on issues related to the report.
“The rest of the response consisted of 330 pages of court records, along with 53 pages of high-level finance, general information, and details about irrelevant corporate initiatives, like how it encourages female entrepreneurship and safe vegetable production.” . saying.
“Our report asked 88 questions specific to Adani Group. In his response, Adani did not specifically answer 62 of them. Instead, he mainly grouped the questions into categories and provided generalized deviations.”
Thereafter, he reiterated his allegations and how the Adani Group had failed to respond to them.
The report from the small New York firm that specializes in short selling led to the Adani Group losing more than $50 billion in market value in just two trading sessions last week and Adani himself losing more than $ 20 billion, or about a fifth. of his total fortune.
In the report, Hindenburg referred to the conglomerate’s “substantial debt,” which includes the promise of shares in exchange for loans; that Adani’s brother, Vinod, “manages a vast maze of offshore shell entities” that move billions to group companies without required disclosure; and that his auditor “seems hardly capable of complex audit work.”
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