Hindenburg 2.0: OCCRP alleges Mauritius-based opaque funds invested in Adani stock; company denies
New Delhi (PTI): The Organised Crime and Corruption Reporting Project (OCCRP) on Thursday trained gun at billionaire Gautam Adani's group, alleging hundreds of millions of dollars were invested in publicly traded group stocks through Mauritius-based 'opaque' investment funds managed by partners of promoter family, charges the conglomerate denied vehemently.
The fresh allegations by an organisation funded by likes of George Soros and Rockefeller Brothers Fund come months after a US short seller wiped away close to USD 150 billion in value of Adani group stocks with allegations of accounting fraud, stock price manipulation and improper use of tax havens by the ports-to-energy conglomerate run by billionaire Gautam Adani. Adani Group has denied all Hindenburg allegations.
Citing review of files from multiple tax havens and internal Adani Group emails, OCCRP said its investigation found at least two cases where the "mysterious" investors bought and sold Adani stock through such offshore structures.
The two men, Nasser Ali Shaban Ahli and Chang Chung-Ling, who OCCRP claimed have longtime business ties to the Adani family and have also served as directors and shareholders in Group companies and firms associated with Gautam Adani's elder brother Vinod Adani, "spent years buying and selling Adani stock through offshore structures that obscured their involvement - and made considerable profits in the process."
The documents "show that the management company in charge of their investments paid a Vinod Adani company to advice them in their investment", it alleged.
Adani in a statement categorically rejected what it called as "recycled allegations", calling them "yet another concerted bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report".
"These claims are based on closed cases from a decade ago when the Directorate of Revenue Intelligence (DRI) probed allegations of over invoicing, transfer of funds abroad, related party transactions and investments through FPIs. An independent adjudicating authority and an appellate tribunal had both confirmed that there was no over-valuation and that the transactions were in accordance with applicable law. The matter attained finality in March 2023 when the Supreme Court of India ruled in our favour. Clearly, since there was no over-valuation, there is no relevance or foundation for these allegations on transfer of funds," it said.
The foreign portfolio investors named in the OCCRP report "are already part of the investigation by the Securities and Exchange Board of India (SEBI)", it said. "As per the Expert Committee appointed by the Hon'ble Supreme Court, there is no evidence of any breach of the Minimum Public Shareholding (MPS) requirements or manipulation of stock prices."
"These attempts are aimed at, inter alia, generating profits by driving down our stock prices and these short sellers are under investigation by various authorities. As the Supreme Court and SEBI are overseeing these matters, it is vital to respect the ongoing regulatory process," it said. "We have complete faith in the due process of law and remain confident of the quality of our disclosures and corporate governance standards. In light of these facts, the timing of these news reports is suspicious, mischievous and malicious - and we reject these reports in their entirety."
PTI had on August 24 reported that the Soros-funded organisation, which calls itself an investigative reporting platform formed by 24 non-profit investigative centres... spread across Europe, Africa, Asia and Latin America, is planning publication of fresh allegations against a top Indian corporate.
OCCRP asked if Ahli and Chang should be considered to be acting on behalf of Adani promoters. "If so, their stake in the Adani Group would mean that insiders altogether owned more than the 75 per cent allowed by law," it said, adding this violated Indian listing law.
It went on to state that there was no evidence Chang and Ahli's money for their investments coming from the Adani family, but said its investigation showed there "is evidence" that their trading in Adani stock "was coordinated with the family".
"The Adani Group's rise has been staggering, growing from under USD 8 billion in market capitalization in September 2013 -- the year before Modi became prime minister -- to USD 260 billion last year," it said.
The conglomerate is active in a dizzying array of fields, including transportation and logistics, natural gas distribution, coal trade and production, power generation and transmission, road construction, data centres, and real estate.
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Illegal overseas recruitment busted in Mangaluru; POE Bengaluru urges caution among jobseekers
Here’s what you should do before attending any interviews for jobs abroad
Mangaluru, May 17 – In a crackdown on illegal overseas recruitment activities, Avaneesh Shukla, the Protector of Emigrants (POE), Bengaluru, under the Ministry of External Affairs, visited Mangaluru on Thursday after receiving credible information regarding unauthorised interviews being conducted for overseas job placements.
Speaking to Vartha Bharati on May 17, Shukla confirmed that two separate cases of illegal recruitment have come to light in the city. These actions, he said, were taken in close coordination with the Mangaluru City Police as part of their ongoing efforts to ensure safe and legal migration for Indian citizens.
According to Shukla, upon receiving information that a recruitment drive was about to take place in Bendoorwell, he immediately travelled to Mangaluru. By the time he reached, the planned interviews were already postponed. However, investigation revealed that the agency in question, identified as Z-Zone Consultancy, was operating without the mandatory license required under the Immigration Act, 1983.
A police case has already been registered against Z-Zone Consultancy. The POE confirmed that this agency was attempting to recruit individuals for jobs overseas without valid authorisation from the Ministry of External Affairs.
Shukla further revealed that a separate agency operating out of Pumpwell, which had been active on social media platforms for the past six months, was also caught engaging in similar illegal activities. The agency had been advertising jobs in Europe, Israel, Mauritius, and Gulf countries.
Following a joint raid with the Mangaluru Police, officials confiscated various documents including application forms that listed destinations applied for, as well as bio-data of candidates. The agency's Instagram and other social media handles were found flooded with advertisements promising overseas job opportunities.
An FIR has been registered against this agency as well, making this the third case in the last six months to be booked under the Immigration Act in Karnataka.
Prior to these two recent cases, a similar action was taken against another agency named Higher Glow Elegant Overseas Placement, also located in Bendur Valley. An FIR had been filed against this agency earlier for similar violations.
Shukla stressed that such fraudulent agencies are increasing in number and are preying on the dreams of job seekers, particularly those aiming to work abroad. He urged all citizens to verify the legitimacy of any recruitment agency before engaging with them.
Under Section 10 of the Immigration Act, 1983, no individual or organisation in India is permitted to carry out recruitment for overseas employment without a valid certificate issued by the Ministry of External Affairs. Shukla clarified that those who violate this law can be punished under Section 24 of the Act.
The punishment includes imprisonment up to two years or a fine of ₹2000. In case of a repeat offence, both the fine and imprisonment duration will be doubled.
What Should Jobseekers Do?
Shukla issued a clear advisory to all Indian citizens aspiring to work abroad. He said people must verify if the recruitment agent is registered with the Ministry of External Affairs. This can be done in two ways:
By visiting the official government website: www.emigrate.gov.in
By contacting the Protector of Emigrants (POE) Bengaluru office via email at: poebengaluru@mea.gov.in
The website also provides a complete list of registered recruitment agencies and contact details of all POE offices across India.
Help for Distressed Indian Workers Abroad
When asked about what assistance is available for Indians who may have been duped and are stranded or exploited abroad, Shukla assured that help is available.
Affected individuals can:
Email the POE office
Call the 24x7 toll-free helpline: 1800-11-3090
Even if the person stuck abroad is unable to call, their family or friends can contact the helpline. The issue will then be forwarded to the concerned POE, who will take necessary action.
Responding to a question on steps being taken to raise awareness, Shukla said that awareness programs are being actively carried out across various districts. He personally conducted a sensitisation program for the Mangaluru City Police six months ago and held a session at a local nursing college to educate students about legal migration processes.
The POE offices also collaborate with state governments and other departments to educate people and discourage them from approaching illegal agents.
Appeal to Jobseekers and Agents
In his remarks, Avaneesh Shukla made a strong appeal to all citizens and recruitment agencies.
“To all aspiring emigrants, I urge you to stay alert and approach only registered agents. If you go through an illegal agent, you are putting yourself and your family at risk,” he said.
He also sent a stern warning to agents conducting recruitment without a valid license, urging them to stop immediately and register with the Ministry if they wish to continue such work legally.
“Instead of risking legal action, come forward and work with us to ensure safe and legal migration,” he added.
Important Contacts for the Public
Official Website: www.emigrate.gov.in
Email: poebengaluru@mea.gov.in
24x7 Toll-free Helpline: 1800-11-3090
