Adani Group denies Hindenburg allegations of freezing $310 million in Swiss bank deposits

US-based short seller Hindenburg Research has claimed that Swiss authorities have frozen over $310 million in several bank accounts as part of an ongoing investigation into alleged money laundering and securities forgery related to Indian conglomerate Adani Group. Adani Group has strongly denied the allegations.

According to a post by Hindenburg on X (formerly Twitter), the claim is based on “newly released Swiss criminal records reported by Swiss media outlet Gotham City.” The post claims the frozen funds are linked to a 2021 investigation. “Prosecutors detailed how an Adani frontman invested in opaque funds in the British Virgin Islands/Mauritius and Bermuda that owned almost exclusively Adani shares,” Hindenburg explained, citing the report.

As part of an investigation into Adani for money laundering and securities counterfeiting, Swiss authorities have already frozen over $310 million in several Swiss bank accounts in 2021.

Prosecutors described in detail how an Adani frontman invested in opaque …

— Hindenburg Research (@HindenburgRes) 12 September 2024

The Gotham City report refers to a ruling by the Swiss Federal Criminal Court (BStGH) that the Geneva public prosecutor’s office had launched an investigation into the Adani Group long before Hindenburg’s first allegations in 2021. “More than $310 million belonging to an alleged front man of billionaire Gautam Adani have been seized in five Swiss banks,” the report says. Following media coverage, the Office of the Federal Prosecutor (OAG) took over the lead of the investigation.

The Adani Group has dismissed the allegations as unfounded and denied involvement in the Swiss legal proceedings.

A spokesperson for the conglomerate issued a statement saying: “We unequivocally refute and deny the baseless allegations. The Adani Group is not involved in any Swiss legal proceedings, nor have any of our company accounts been seized by any authority.”

The spokesperson said: “In addition, the Swiss court itself did not mention our group companies in the alleged order, nor have we received any requests for clarifications or information from any such authority or regulator. We reiterate that our foreign holding structure is transparent, fully disclosed and complies with all relevant laws.”

“These allegations are clearly absurd, irrational and preposterous. We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts to collectively inflict irreversible damage to the reputation and market value of our Group. The Adani Group remains committed to transparency and compliance with all legal and regulatory requirements. We strongly condemn this endeavor and request you to refrain from publishing this story. Should you decide to proceed, please include our statement in full,” the spokesperson added.

Hindenburg, known for his previous allegations of stock market manipulation and fraud against the Adani Group in January 2023, stated that Swiss criminal court files contained details of how the Adani frontman invested in opaque offshore funds that were heavily concentrated in Adani shares.