LUCKNOW (CoinChapter.com) — Shares of most Adani group companies recovered mildly on Sep. 1 but sustained the overall bearish momentum led by market manipulation allegations.
Organized Crime and Corruption Reporting Project (OCCRP), a multi-national nonprofit, alleged that entities controlled by billionaire tycoon Gautam Adani, rumored to be closely associated with India’s PM Narendra Modi, have purchased their group shares en masse through opaque investment funds in Mauritius.
In response, the Adani group dismissed the allegations as “baseless and unsubstantiated.” Furthermore, it assured that all publicly listed Adani Group entities fully comply with relevant laws, including regulations related to public shareholdings.
However, market analysts have advised caution when considering short-term investments in Adani stocks.
“It is better to not take any short-term position in these stocks amid the news flow as the stock is not going to follow the stop loss levels,” said Shrikant Chouhan, EVP at Kotak Securities, adding:
“We will see huge amount of volatility in near term. If Adani Ports corrects to Rs 800 or 790, buy on dips and expect to see Rs 850-860 on the higher side and Rs 780-790 on the lower side.”
Longtime Associates Under Scrutiny
The OCCRP report highlights two individuals, Nasser Ali Shaban Ahli and Chang Chung-Ling, who have longstanding business connections with the Adani Family.
The messers have served as directors and shareholders in Adani Group companies. They have links to Vinod Adani, a senior family member and the older brother of Gautam Adani.
The report further claims that documents demonstrate the significant profits accumulated through purchasing and selling Adani stock via offshore agreements that concealed their participation. Additionally, the management company overseeing these “partners” investments reportedly paid a Vinod Adani company for investment advice.
Prior Controversy and Regulatory Action
The development follows a January 2023 report by US-based short-seller Hindenburg Research. The report accused the Adani Group of engaging in a long-running stock manipulation and accounting fraud scheme.
Recent reports indicate that the Securities and Exchange Board of India (SEBI) has investigated the Adani group. This investigation revealed violations of disclosure rules by listed entities and offshore fund holdings limits.
The Adani Group has a diverse presence spanning commodities, including trading, airports, utilities, ports, and renewable energy sectors within India and abroad.
Gautam Adani is often associated with Indian Prime Minister Narendra Modi. Also, he frequently encounters accusations from opposing politicians claiming that his political affiliations have favored him— an assertion he firmly denies.
