Adani Expose: Chinese-Saudi citizen accused of price rigging by buying Adani shares

After Hindenburg, now a global organization called Organized Crime and Corruption Reporting Project (OCCRP) has leveled major allegations of fraud against Gautam Adani's group. According to the OCCRP report, business partners of the promoter family had invested crores of dollars in Adani Group shares through Mauritius-based 'Benami' investment funds.

OCCRP caught two cases

The OCCRP said in its report that its investigation uncovered at least two cases where unnamed investors bought and sold Adani Group stocks through offshore structures. Notably, OCCRP receives funding from organizations such as billionaire George Soros and the Rockefeller Brothers Fund. George Soros is the same billionaire who has been criticizing the Modi government at the Center from time to time.

What is the matter?

It is worth mentioning that some important public investors of Adani Group who are especially insiders of Adani are facing several allegations. He is accused of violating the Indian Securities Law. However, no investigating agencies have been able to identify him so far. However, now OCCRP has made a shocking revelation on it with the help of some such documents. It has also taken the help of several tax havens, bank records and internal emails of the Adani Group.

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What is in the documents?

According to the OCCRP report, people with knowledge of the Adani Group's business said there was ample evidence that millions of dollars were directly invested by the Mauritius-based OPEC Investment Fund in Adani Group's publicly held shares. In two cases, the investment of representatives holding Adani stock reached 430 million dollars. The relationship of these mysterious investors with the Adani Group has been revealed. Names of Nasser Ali Shahban Ahli and Chang Chung Ling have come up in it. Both have been long-time shareholders, directors of the Adani Group and have close ties with senior members of the Adani family. In which the name of Vinod Adani is included.

Claim of 75 percent share purchase

The documents revealed that the Mauritian fund bought and sold Adani stock during the year through an offshore structure. Made a lot of profit in it. Along with this, the in-charge of the management company also paid Vinod Adani for the investment. An expert on the Indian stock market and an advocate of transparency says that when a company buys 75 percent of its own shares, it is not only illegal but it is also called manipulation of share prices. This is artificially manipulated in stock prices.

Was the SEBI investigation confused?

SEBI conducted an inquiry into Hindenburg's allegations. He feared that not all bona fide public shareholders were in the Adani Group and that the role of promoters was coming to the fore. In 2020, the matter was also investigated, covering 13 foreign firms that held shares in Adani's stock. But SEBI could not reach any conclusion in this matter. She did not know who was behind this money.

These details were found in the OCCRP report

According to the OCCRP report, the documents found revealed that the Emerging India Focus Fund (EIFF) and the EM Resurgent Fund (EMRF) were being operated by some wealthy investors. Two large foreign investors invested money in both these funds. It included Chang from Taiwan and Ahli from the United Arab Emirates. It was with the help of these two funds that the processes of buying and selling of shares were done in four companies of Adani between 2013 and 2018. At one point in 2017, the value of the investment in Adani Group's stock touched $430 million.

Will there be a proper investigation into these allegations?

After this report, experts are discussing on social media whether these allegations against Adani will be investigated independently or the matter will be suppressed.

Will India's SEBI & the Enforcement Directorate take cognizance of these investigative reports and investigate the fresh allegations? Or will there be an attempted cover-up, which is likely to fail? And will this new information come up before the Supreme Court of India, which is…

— N. Ram (@nramind) August 31, 2023

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The Adani Group denied the allegations

On the other hand, it has been said on behalf of the Adani Group that the Hindenburg report also mentioned the fund of Mauritius. The allegation is not only baseless but also unsustainable.

Chang and Ahli declined to comment

Ahli and Chang declined to comment when contacted on the matter. Chang said in an interview that he had no knowledge of the secret purchase of Adani stock. He even told the reporter why other investments are not showing interest. We are engaged in a common business. Vinod Adani also did not comment on this matter. His role has been consistently denied by the Adani Group. However, in March he admitted that he was a member of the promoter group. That means he was in control of the company's affairs and every company in the Adani Group was aware of this.

In January, Hindenburg made a major charge

In the month of January, American short seller firm Hindenburg also made similar allegations. Hindenburg said that the Adani Group has manipulated stocks through shell companies. Apart from this, many other issues including audit and loans surrounded the group. Adani Group termed Hindenburg's claims as misleading and unsubstantiated and said that we have always followed the law.

The Mauritius government denied the allegations

Mauritius was mentioned in the Hindenburg Report. The report alleged that the Adani Group manipulated its shares with the help of shell companies based in Mauritius. However, the Finance Minister of Mauritius said in Parliament that the Hindenburg Report, which alleged the presence of fake Adani Group companies in the country, was false and baseless. However, the Hindenburg report rocked the Adani empire and saw its market cap drop by $150 billion.