Gautam Adani Under Scrutiny: Swiss Authorities Freeze $310 Million in Alleged Funds
In a shocking development, Swiss authorities have frozen over $310 million in funds across multiple Swiss bank accounts as part of an ongoing investigation into alleged money laundering and securities forgery linked to the Indian conglomerate Adani Group. The probe, which dates back to 2021, has shed light on financial practices involving opaque offshore entities tied to the Indian billionaire Gautam Adani.
Swiss Criminal Court Records Reveal Adani Frontman’s Investments
According to newly released Swiss criminal court records reported by Swiss media outlet Gotham City, prosecutors have detailed how an Adani frontman invested in opaque funds based in the British Virgin Islands (BVI), Mauritius, and Bermuda that held primarily Adani stocks. The report adds that more than $310 million belonging to an alleged frontman for Gautam Adani is sequestered in six Swiss banks.The investigation, which began in December 2021, has uncovered suspicious financial activity and alleged manipulation of Adani stock prices. The Office of the Attorney General of Switzerland (OAG) took over the probe from the Geneva Public Prosecutor’s Office after the case was revealed in the press.
Adani Group Denies Allegations, Calls Them “Preposterous”
In response to the allegations, the Adani Group has issued a strong denial, calling the claims “preposterous, irrational, and absurd.” The conglomerate stated that it has “no involvement in any Swiss court proceedings” and that none of its company accounts have been subject to sequestration by any authority. The group also clarified that even in the alleged court order, its companies were not mentioned, nor have they received any requests for clarification from Swiss authorities.The Adani Group reiterated that its overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws. The company accused the same cohorts of orchestrating an “egregious attempt” to inflict irreversible damage on its reputation and market value.
Hindenburg’s Allegations and SEBI’s Probe
The latest developments come on the heels of a series of allegations made by U.S.-based short-seller Hindenburg Research against the Adani Group. In January 2023, Hindenburg accused the conglomerate of using tax havens to circumvent local market regulations. More recently, in August 2024, Hindenburg alleged that the Securities and Exchange Board of India (SEBI) chairperson, Madhabi Puri Buch, might have a conflict of interest in the ongoing investigation due to her past investments and dealings.SEBI is currently probing the Adani Group in the Hindenburg case, and the Supreme Court has refused to transfer the investigation to a separate special investigation team (SIT), stating that the “power of this court to enter the regulatory framework of SEBI is limited.”
Ongoing Scrutiny and Implications
The Swiss investigation and the freezing of $310 million in alleged funds linked to the Adani Group have further intensified the scrutiny surrounding the conglomerate. The complex web of offshore entities and the alleged manipulation of stock prices have raised serious concerns about the group’s financial practices and governance.As the investigation progresses, it will be crucial for the Swiss authorities and SEBI to uncover the truth and ensure that any wrongdoing is addressed. The outcome of these probes will have significant implications for the Adani Group, its investors, and the broader Indian business landscape.