The Business of Indian Billionaire Adani Faces Renewed Turbulence Amid Fresh Allegations

Gautam Adani, the billionaire founder of the Adani Group, is once again confronting significant challenges as his business empire faces new scrutiny.

This week, a fresh wave of allegations from activist short-seller Hindenburg Research triggered a sharp decline in the stock prices of Adani Group companies, erasing approximately $2.4 billion from their market value. The latest sell-off follows claims by Hindenburg that the head of India’s capital markets regulator has connections to an offshore fund network allegedly associated with the Adani Group.

Hindenburg Research, known for its strategy of profiting from declining stock prices, has a history of accusing the Adani Group of wrongdoing. Earlier in 2023, the group’s market value plummeted by around $150 billion after Hindenburg’s initial accusations surfaced in January.

In a previous report titled “How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History,” Hindenburg accused the Adani Group of tax haven misuse and long-standing stock manipulation and fraud, prompting an investigation led by the Supreme Court of India in coordination with the Securities and Exchange Board of India (SEBI).

The latest Hindenburg report, citing whistleblower documents, suggests a conflict of interest involving SEBI’s chief, Madhabi Puri Buch, due to stakes held by her and her husband in offshore entities allegedly linked to the artificial inflation of Adani Group shares. The couple responded by strongly denying these claims, describing them as unfounded and misleading.

SEBI separately stated that it had already investigated the allegations made by Hindenburg against the Adani Group. The Adani Group, for its part, firmly rejected all accusations, branding Hindenburg’s report as “malicious, mischievous, and manipulative,” and accused the research firm of reaching “pre-determined conclusions for personal gain, ignoring facts and the law.”

In 2022, Adani’s wealth soared, positioning him as the world’s third-richest person at the beginning of 2023. However, following Hindenburg’s allegations, he has since dropped to 22nd place on the Bloomberg Billionaires Index, which now estimates his net worth at $104 billion, placing him as the 12th wealthiest individual globally, behind Asia’s richest man, Mukesh Ambani.

The latest accusations come at a challenging time for Adani, as his company is in the midst of international expansion efforts. Recently, Business Insider reported that Karan Adani, Gautam Adani’s son, aims to reduce China’s dominance in seaports and transform India into a leading global trading hub.

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