Adani Group-Hindenberg Issue: The news of relief has come from Mauritius for the Adani group. Financial Services Minister Mahen Kumar Siruttan has told the Parliament there that no shell company exists in Mauritius and the allegations made by Hindenburg against the Adani group are completely false and baseless. He said that Mauritius fully complies with the tax rules of the OECD.
On 24 January 2023, Hindenburg alleged in his research report that Gautam Adani’s Adani Group manipulates the share prices of companies listed on the stock exchange through shell companies in Mauritius. In the Parliament of Mauritius, a Member of Parliament had given a written notice and asked questions regarding Hindenburg’s allegations. In response to which the minister there said that the law of the country does not allow shell companies here.
He said that I want to tell the House that the allegation of presence of shell companies in Mauritius is false and baseless. He said that according to the law here shell companies are not allowed to work. All Global Business Companies licensed by the Financial Services Commission have to meet all the standards and are closely monitored by the Commission. And so far no such violation has been found.
According to the Financial Services Minister, the Financial Services Commission has taken cognizance of the Hindenburg report but the regulator is bound by the rule of confidentiality, so it is not appropriate for them to give any details. The Financial Services Commission neither accepts nor rejects the matter of investigation. Disclosure of information of Global Business Companies would be considered a violation of the Financial Services Act and may damage our reputation.
After the Hindenburg report came out, there was a big fall in the shares of Adani Group. The market cap of the group fell from Rs 19 lakh crore to around Rs 7 lakh crore. Share prices had fallen by more than 80 percent.
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