Swiss authorities freeze USD 311 mn of alleged Adani proxy, Adani Group denies any link
New Delhi (PTI): Swiss authorities have frozen USD 311 million (Rs 2,610 crore) held by a Taiwanese resident in multiple Swiss bank accounts as part of money laundering probe, suspecting he may be a frontman from the Adani group -- a charge the conglomerate vehemently denied saying it was neither involved in any Swiss court proceedings nor any of its accounts are subject to sequestration.
US-based short-seller Hindenburg Research, which had last year targeted the Adani group in a damning report that led to wiping away of USD 150 billion in market value of listed firms of the conglomerate in the following weeks, in a post on X cited "newly released Swiss criminal records reported by Swiss media outlet" to state that "Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021."
"Prosecutors detailed how an Adani frontman invested in opaque BVI/Mauritius & Bermuda funds that almost exclusively owned Adani stocks," it said citing the report.
Adani group rejected the allegations as baseless saying it had no involvement in any Swiss court proceedings.
"We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority," it said.
The Swiss media outlet Gotham City in its report stated that a ruling by the Federal Criminal Court (FCC) reveals that the Geneva Public Prosecutor's Office was investigating alleged wrongdoing and more than USD 310 million belonging to an alleged front man for billionaire Gautam Adani have been sequestered in five Swiss banks over the last three years.
The Swiss investigators suspect that the associate, Chang Chung-Ling, is not the ultimate beneficial owner (UBO) of the company under investigation, but a mere front.
The Adani Group, however, said that the court order was not linked to them and they have not been mentioned in it.
"Even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws," the conglomerate said.
The allegations, it said, "are clearly preposterous, irrational, and absurd. We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group's reputation and market value."
"The Adani Group remains steadfastly committed to transparency and compliance with all legal and regulatory requirements," it said.
The name of Chang Chung-Ling had first surfaced in the 2023 Hindenburg report that alleged stock market manipulation, accounting fraud and money laundering at Adani Group. Adani Group has repeatedly denied all charges.
He was alleged to have made substantial profits by buying and selling Adani stocks through offshore funds and that he was the sole director of Growmore, allegedly a shell company based in Mauritius used to siphon off funds.
According to Hindenburg, Growmore netted an overnight USD 423 million gain through a stock merger with Adani Power.
Chung-Ling's son, Chang Chien-Ting was identified as the alleged sole beneficial owner of PMC Projects (India), which along with Growmore and Adani Global were firms that were investigated by SEBI over related-party transactions. The outcome of the SEBI probe is not known.
According to the Swiss media report, a court order of August 9, 2024, which was published on September 10, 2024, stated that the Adani Group is "suspected of engaging in illicit activities, including money laundering and embezzlement".
An entity controlled by Chang Chung-Ling invested substantial amounts of money entrusted to him by the Adani Group in "opaque funds".
Hindenburg claimed that criminal court records show in detail how an Adani frontman invested in opaque BVI/Mauritius and Bermuda funds that almost exclusively owned Adani stock.
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Railway lines as fence could cut cost of barricading to curb man-elephant conflicts: MP Wadiyar
Bengaluru, Sept 17: MP Yaduveer Krishnadatta Chamaraja Wadiyar has suggested that to bring down the exorbitant cost barricading – estimated to cost around Rs 1.3 to Rs 1.5 crore per kilometre – railway lines could be used to construct fences on Tuesday.
Wadiyar took to X to share the letter he had sent to Union Environment Forest & Climate Change Minister Bhupendra Yadav.
Stating that “railway (lines) barricading” is proving to be an effective way to restrict the movement of elephants, he suggested that this should be taken up on a large scale.
“Upon consultation with the relevant authorities, it has come to my understanding that the cost of barricading per kilometre comes to Rs 1.3 crore to Rs 1.5 crore. Given that the border of the forests in my constituency stretches to over 400 km, with around 280 km of forest border requiring immediate barricading, the cost of such an exercise will reach Rs 350 crore to Rs 400 crore,” he wrote in his letter.
He said the environment ministry could make a direct request with the railway ministry for an allocation of railway lines, thus reducing the cost of the project to just that of labour cost.
“The benefits of this initiative are manifold, from reduction of human casualties, protection of property and livelihood, to conservation of elephants and, most importantly, promoting human-elephant coexistence, which is the need of the hour,” he added.
Working towards safer coexistence in Mysore-Kodagu! Submitted proposal to Union Environment Forest & Climate change Minister Shri Bhupendra Yadav Ji for railway barricading to reduce elephant-human conflicts. pic.twitter.com/VjOWIF1TTC
— Yaduveer Wadiyar (@yaduveerwadiyar) September 17, 2024
