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

A day after US investor Hindenburg Research published a report accusing companies owned by billionaire Gautam Adani of “brazen” market manipulation and accounting fraud, MP Manish Tewari said the allegations were even partially true. research. (Also read | Who is behind Hindenburg, the company that shorts Adani?)

Short-seller Hindenburg Research, which has a track record of finding corporate misconduct and placing bets against the companies, disclosed short positions in Adani Group, citing possible stock manipulation and accounting fraud in a report. The allegations caused bonds and stocks in the conglomerate’s companies to collapse.

“If allegations from short seller @HindenburgRes are even partially true, it deserves both a Joint Parliamentary Committee – like the 1992 JPC – and a Supreme Court-controlled inquiry to get to the bottom of the matter,” tweeted MP Congress. “Parliament’s Budget Session begins on January 31, 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 that the main listed Adani companies had “significant debts”, which has put the entire group in a “precarious financial position”. The report coincided with Adani’s upcoming $2.5 billion secondary stock sale on Friday.

Adani Group rejected the allegations and said it is investigating legal action against the investment research firm.

“We are reviewing the relevant provisions under US and Indian law for corrective and punitive action against Hindenburg Research,” said Jatin Jalundhwala, Group Head – Legal, Adani Group in a statement on Thursday.

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

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(with input from Reuters, Bloomberg)


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