Any action will be ‘meritless’: Hindenburg defends report on Adani Group

The investment research firm in its report has alleged that Adani Group engaged in brazen stock manipulation and accounting fraud over the course of decades.

New Delhi, Jan 26: Investment research firm Hindenburg responded to Gautam Adani-led Adani Group after the business conglomerate said it would seek 'remedial and punitive action' against it over accusations of improper use of offshore tax havens.

"In the 36 years since we released the report, Adani hasn't addressed a single substantive issue we raised. At the conclusion of our report, we asked 88 straightforward questions that we believe give the company a chance to be transparent." a statement by the firm on its Twitter handle read.

Our response to Adani: pic.twitter.com/6NcFKR8gEL

— Hindenburg Research (@HindenburgRes) January 26, 2023

"Instead, as expected, Adani has resorted to bluster and threats. In a statement to media today, Adani referred to our 106-page, 32,000-word report, with over 720 citations and prepared over the course of 2 years, as "unresearched" and said it is "evaluating the relevant provisions under U.S. and Indian laws for remedial and punitive action" against us," it said.

"Regarding the company's threats of legal action, to be clear, we would welcome it. We fully stand by our report and believe any legal action taken against us would be meritless," the statement added.

"If Adani is serious, it should also file suit in the U.S. where we operate. We have a long list of documents we would demand in a legal discovery process," the statement concluded.

The investment research firm in its report has alleged that Adani Group engaged in brazen stock manipulation and accounting fraud over the course of decades. The report was released as the business conglomerate opened a Rs 20,000 crore follow on share sale, PTI reported.

The report detailed a list of Adani-family controlled offshore shell entities in tax havens across the Caribbean, Mauritius to the UAE, which according to it were allegedly used to 'facilitate corruption, money laundering and taxpayer theft'.

Responding sharply, Adani referred to our 106-page, 32,000-word report, with over 720 citations and prepared over the course of 2 years, as 'unresearched' and said it is 'evaluating the relevant provisions under US and Indian laws for remedial and punitive action' against us".

The investment firm said it stands by the report and believes any legal action against it will be 'meritless'. Hindenburg dared the Adani Group to file a suit in the US where it operates.