Adani Denies Money Laundering Allegations as Swiss Court Ruling Freezes $311 Million

India’s Adani Group is facing renewed scrutiny after a Swiss court ruling froze $311 million belonging to a company suspected of money laundering on behalf of the conglomerate. The Adani Group vehemently denies the allegations, calling them “absurd.”

The 12-page ruling, released on August 7th, 2024, shows that Swiss prosecutors began investigating the owner of a company named A.Ltd in December 2021. The investigation focused on suspected money laundering and embezzlement for a “business group.” The frozen assets are believed to be linked to offshore funds in Mauritius and Bermuda.

The court document suggests that the owner of A.Ltd might be acting as a “front man” for this unnamed business group. Prosecutors suspect the company received significant sums from the group, which were then invested in offshore funds ultimately controlled by the group or its directors. These funds allegedly bought shares in Adani Group companies, potentially inflating their value and influencing loan approvals backed by those shares as collateral.

While the court ruling doesn’t explicitly name the Adani Group, it outlines details that mirror accusations previously made by U.S. short seller Hindenburg Research. Hindenburg, in a January 2023 report, alleged that Adani engaged in “brazen stock market manipulation” and used offshore funds to circumvent regulations.

The Adani Group has fiercely rejected these claims, calling them “an orchestrated attempt to inflict irreversible damage.” They maintain they have no involvement in any Swiss court proceedings concerning them and that none of their accounts have been frozen. The Group has not responded to further inquiries about the ruling or their potential connection to the unnamed business group in question.

Meanwhile, India’s stock market regulator is also facing scrutiny related to the Adani Group saga. The opposition Congress party demands the resignation of the regulator’s chairperson, Madhabi Puri Buch, over allegations that she used offshore funds potentially linked to Vinod Adani, Gautam Adani’s brother. Hindenburg, citing whistleblower documents, previously raised concerns about Buch’s past offshore investments and called for transparency.

This Swiss court ruling adds another layer to the ongoing controversy surrounding the Adani Group. While the company vehemently denies any wrongdoing, the investigation highlights concerns about potential financial improprieties. The situation continues to unfold and its potential repercussions for both the Adani Group and India’s market regulations remain to be seen.