Corporate Watch

Adani’s fraud cannot be obfuscated by nationalism: Hindenburg

Hindenburg has rejected Adani Group's charge that its report was an attack on India, saying that a fraud cannot be obfuscated by nationalism

PSU Watch Bureau

New Delhi: As the Indian stock market was to open Monday, all eyes were set on stocks of Adani Group companies, a day after it released a 413-page response to allegations of wrongdoing by US short seller Hindenburg Research. Commenting on the response Adani Group released on Sunday, Hindenburg said that it believed India was a vibrant democracy and an emerging superpower with an exciting future and it was Adani Group which was holding it back through "systematic loot".

413-page response only included about 30 pages focused on issues related to the report: Hindenburg

Hindenburg said Adani's '413-page' response only included about 30 pages focused on issues related to the report.

"The remainder of the response consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables," it said.

Hindenburg has rejected Adani Group's charge that its report was an attack on India, saying that a fraud cannot be obfuscated by nationalism or a bloated response that ignored response to key allegations.

Adani failed to specifically answer 62 questions

"Our report asked 88 specific questions of Adani Group. In its response, Adani failed to specifically answer 62 of them. Instead, it mainly grouped questions together in categories and provided generalised deflections," said Hindenburg. It thereafter went on to reiterate its allegations and how Adani Group has failed to respond to them.

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