The Organised Crime and Corruption Reporting Project (OCCRP) has published a new report alleging that the Adani Group, one of India’s largest conglomerates, engaged in stock manipulation in order to inflate the value of its shares.
The report, which was published on August 31, 2023, draws on a trove of leaked documents and interviews with sources familiar with the Adani Group’s operations. It alleges that two individual investors with close ties to the Adani family used offshore structures to buy and sell Adani shares in a way that artificially inflated the price of the stock.
The report also alleges that the Adani Group used its political connections to pressure regulators to look the other way as it engaged in these practices.
The Adani Group has denied the allegations in the OCCRP report, calling them “baseless” and “malicious”. The group has said that it will take legal action against the OCCRP and its sources.
The OCCRP report is the latest in a series of allegations that have been leveled against the Adani Group in recent years. In January 2023, the US-based short-seller Hindenburg Research published a report alleging that the Adani Group was engaged in a “brazen stock manipulation and accounting fraud scheme”. The Adani Group denied those allegations as well.
The allegations against the Adani Group have raised concerns about the transparency and accountability of the company. The group has been accused of using its political connections to gain favorable treatment from the government, and of engaging in unethical business practices.
The OCCRP report is likely to add to the pressure on the Adani Group. The group is already facing scrutiny from regulators in India and abroad. The report could also damage the group’s reputation and make it more difficult for it to raise capital in the future.
The allegations against the Adani Group are serious and need to be investigated thoroughly. If the allegations are true, the group should be held accountable for its actions. The Indian government should also take steps to ensure that the country’s financial markets are free from manipulation and corruption.
In the meantime, investors should be cautious about investing in the Adani Group until the allegations have been fully investigated.