Adani refutes Hindenburg claims of $310 million fund freeze in Swiss banks, terms it ‘baseless’
- In Reports
- 12:39 PM, Sep 13, 2024
- Myind Staff
In a statement issued by the Adani Group late Thursday, it denied claims made by New York-based short seller Hindenburg Research, which stated that beginning in 2021, the Swiss authorities had frozen about $310 million in multiple Swiss bank accounts as part of an investigation into the group's alleged money laundering and securities fraud. "We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority," said the company in its media release.
Hindenburg made the assertions on X on Thursday, citing recently made public documents from a criminal court in Switzerland. As the dispute between Adani and Hindenburg raged on, the US short-seller reiterated that the Swiss authorities had frozen the funds in question, citing court documents from the criminal court claiming to have traced the funds to the Adani Group through an investigation of money laundering and securities forgery. However, the Adani Group has strongly denied such allegations and even referred to them as baseless.
The response from the Adani Group reiterated in detail that its overseas holding structure is totally transparent, fully disclosed, and in compliance with all the applicable laws. Also, the company further emphasised that it is not involved in any legal proceeding in Switzerland, stating that none of the group companies are a party to any court documents nor have received any requests for information from Swiss authorities.
“Even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws,” reiterated the Adani Group. The Adani Group described the claims as "preposterous, irrational, and absurd" and stated that they were part of a coordinated attempt to harm the group's reputation and market value.
Hindenburg’s claims contain details of an alleged frontman for Gautam Adani, who, as per the reports, invested in opaque funds based in the British Virgin Islands, Mauritius, and Bermuda that held primarily Adani stocks. "More than $310 million belonging to an alleged frontman for Gautam Adani (chairman of Adani Group) is sequestered in six Swiss banks. The Office of the Attorney General of Switzerland took over the investigation after the case was revealed in the press," Swiss media outlet GothamCity reported.
Image Source: Business Standard
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