Adani Group Denies Freeze Of Swiss Bank Accounts In Money Laundering Investigation

The Adani Group has denied reports that Swiss authorities have isolated bank accounts linked to the conglomerate as part of a money laundering investigation.

Hindenburg Research quoted a report by Swiss media outlet Gotham City that more than $310 million belonging to the Adani Group across multiple Swiss Bank accounts had been frozen as part of investigations into money laundering and securities forgery, some of which date back to 2021.

“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, according to newly released Swiss criminal court records reported by Swiss media outlet, Gotham City,” Hindenburg Research wrote in a post on X (formerly Twitter).

According to the report, Adani’s stocks were held through offshore investment structures based in well-known tax havens, such as the British Virgin Islands, Mauritius, and Bermuda.

Hindenburg Research further cited newly-released Swiss criminal court records which mentioned how an Adani representative had invested in a string of shadowy offshore funds largely filled with Adani stocks.

The Adani Group denied the charges as “baseless” and “absurd”.

It said in an official statement published on its website that no account belonging to the group had been frozen, and neither was the company a party to any Swiss legal case. The group added that no order passed by any Swiss court named the Adani companies, and no formal query for clarification was sought by Swiss authorities or regulators.

It said its foreign holdings were transparently and fully compliant with all legal frameworks and adequately disclosed.

It further said that the “complaint” was an “orchestrated and well-planned” attack to hurt its image and market value. It reiterated that it has always been and will be transparent and compliant with all laws.

“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. Furthermore, 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,” it said in an official statement published on its website.

It added: “These allegations 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. We strongly condemn this effort and urge you to refrain from publishing this story. Should you decide to proceed, we request that you include our statement in full.”

Incidentally, this isn’t the first time that the Adani Group had been accused by Hindenburg.

Earlier in January 2024, Hindenburg Research accused the group of stock manipulation, related-party transactions, and violations of public shareholding norms. The Adani Group denied all charges. More recently, in August, Hindenburg Research had also accused that Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch and her husband held investments pertaining to companies controlled by Vinod Adani, brother of Gautam Adani. Those accusations were denied by both Buch and Sebi.