New Delhi : New reports emerge suggesting secretive investments Adani made in companies he owned to inflate value of shares. The report was released by Organised Crime and Corruption Reporting Project(OCCRP) - a global group of investigative journalists.
The report says Adani trafficked massive money outside the country by the way of shell companies and committed extensive fraud in Indian stock market. These shell companies helped inflate shares of Adani Group shares in the stock market. Global media including The Guardian reports that dollar investment were made by Gautam Adani’s associates themselves and that the fraud was carried out using shell companies set up abroad.
Going by reports, the investment frauds took place between 2013 - 2018 with the modus operandi being like this. Money is paid to shell companies set abroad by generating fake bills. The shell companies then use this money to buy Adani Group shares giving it a foreign investments effect, that ultimately sends Adani shares soaring on indices.
The report says, agencies like the DRI detected the dubiousness early on and began investigations but the process was overturned by Modi government that came to power in 2014.
Meanwhile, Adani has denied all of it saying the reports are deliberate handiwork meant to undermine the credibility of establishments in India.
Incidentally, Hindenburg too had come out with an identical revelation it published last January following which, Adani’s position as the world’s third richest person in the world tanked. Hindenburg report said Adani shares were inflated using dubious overseas companies. Adani shares plummeted in the markets post the report.
The OCCRP report released now is also similar in nature except that, it additionally makes mention of Gautam Adani’s brother Vinod Adani as involved in the game.
