Hindenburg report on Adani merits JPC, SC-monitored probe even if…: Congress MP

The research firm, in its report, raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations.

Updated on: Jan 26, 2023, 13:16:25 IST

By HT News Desk

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Day after US investor Hindenburg Research published report accusing firms owned by billionaire Gautam Adani of “brazen” market manipulation and accounting fraud, Congress MP Manish Tewari said even partial truth to the allegations merits probe by Joint Parliamentary Committee as well as a Supreme Court-monitored investigation. (Also Read | Who is behind Hindenburg, the company that is shorting Adani?)

Hindenburg claimed that Adani group had links with a labyrinth of off shore tax havens linked to Gautam Adani's family and the firms exposure to high debt was a concern. (PTI)

Short-seller Hindenburg Research, which has a track-record of finding corporate wrongdoings and placing bets against the companies, disclosed short positions in Adani Group, citing potential stock manipulation and accounting fraud in a report. The allegations sent bonds and shares in the conglomerate's companies down.

“If allegations made by short seller @HindenburgRes are even partially correct it merits both a Joint Parliamentary Committee-much like the 1992 JPC & a Supreme Court Monitored investigation to get to the bottom of the matter,” Hindenburg," Congress MP tweeted. “The Budget Session of Parliament begins 31st Jan 2023.”

The Hindenburg report questioned how the Adani Group has used offshore entities in offshore tax havens such as Mauritius and the Caribbean Islands. It also said key listed Adani companies had "substantial debt" which has put the entire group on a "precarious financial footing". The report coincided with Adani's upcoming $2.5 billion secondary share sale on Friday.

Adani Group dismissed the allegations and said it was exploring legal action against the investment research firm.

“We are evaluating the relevant provisions under US and Indian laws for remedial and punitive action against Hindenburg Research,” Jatin Jalundhwala, Group Head - Legal, Adani Group said in a statement on Thursday.

“The maliciously mischievous, unresearched report published by Hindenburg Research on 24 Jan 2023 has adversely affected the Adani Group, our shareholders and investors,” said Jalundhwala. “The volatility in Indian stock markets created by the report is of great concern and has led to unwanted anguish for Indian citizens.”

(with inputs from Reuters, Bloomberg)

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