New Delhi: In a recent surge of allegations against the Adani Group of companies, the Organised Crime and Corruption Reporting Project (OCCRP) has claimed that millions of dollars entered specific publicly traded stocks within the group through "opaque" Mauritius funds.

OCCRP, a nonprofit media organization, referred to a review of documents from various tax havens and internal company emails. During their investigation, they identified at least two instances where investors engaged in buying and selling Adani stock via offshore structures. This report emerges approximately eight months after US-based short-seller Hindenburg Research accused the ports-to-energy conglomerate of engaging in improper business practices, including the use of offshore entities in tax havens.

The Adani Group has firmly denied Hindenburg's allegations, asserting its consistent adherence to all relevant laws. In a statement provided to OCCRP, the Adani Group mentioned that the Mauritius funds under scrutiny by journalists had already been named in the Hindenburg report. The group asserted that these "allegations are not only baseless and unsubstantiated but are rehashed from Hindenburg's allegations." The Adani Group also emphasized its compliance with all applicable laws, including regulations pertaining to public shareholdings.

Within the OCCRP report, two individual investors were identified: Nasser Ali Shaban Ahli and Chang Chung-Ling, both described as "longtime business partners" of the Adani family. While no direct evidence suggested that Chang and Ahli's investments were funded by the Adani family, OCCRP's findings, including an agreement, corporate records, and an email, indicated that there was "evidence" suggesting their stock trading activities were coordinated with the family. The question of whether this coordination constituted a legal violation hinges on whether Ahli and Chang should be considered as acting on behalf of Adani promoters, a term used in India to denote majority owners of a business. OCCRP further noted that their stake in Adani holdings could exceed the 75 percent limit allowed for insider ownership. Unfortunately, Ahli and Chang did not respond to OCCRP's requests for comments.

The Hindenburg report had a significant impact on billionaire Gautam Adani and his ports-to-energy conglomerate. In the days following the January report, Adani group stocks suffered a loss of $150 billion in market value, and they remain down approximately $100 billion. However, in recent months, the group's stock prices have shown signs of recovery, driven by the conglomerate's debt repayment and a resurgence in investor confidence. The crisis prompted Adani to halt a $2.5 billion share sale and engage in efforts to reassure banks about his business credentials. Subsequently, the Supreme Court established a panel to oversee a probe by the Securities and Exchange Board of India (Sebi), based on the Hindenburg report.

In May, the panel conveyed that their regulatory efforts had yielded no concrete results in the investigation of potential overseas investment violations within the Adani Group. Subsequently, on August 25, Sebi submitted its status report on the ongoing investigation to the apex court. Initially, Sebi had been given until August 14 to present its findings, but the capital markets regulator requested a 15-day extension, ultimately delivering the status report on August 25. As of now, the contents of the Sebi report remain undisclosed. Nevertheless, various reports suggest that Sebi's investigative document could shed light on the progress of the comprehensive probe, which encompasses a total of 24 inquiries into different aspects of the Adani conglomerate's operations.

Sebi has communicated to the apex court that it is still awaiting information from five tax havens regarding the actual owners behind foreign investors investing in the conglomerate, as reported by PTI. Of these 24 investigations, a substantial 22 have already reached their conclusion, leading to the issuance of final investigation reports. Additionally, one interim investigation report has been prepared as part of the ongoing scrutiny of the Adani Group's operations.

The course of action concerning the interim report's next steps hinges on the receipt of vital information from international regulators. Sebi has indicated its intention to conclude its actions once this critical overseas data becomes accessible. Furthermore, Sebi has disclosed that its report is in the final stages of preparation, though the investigation into certain offshore transactions has faced delays due to the presence of entities in tax haven jurisdictions. The regulatory body has reaffirmed its commitment to taking appropriate actions based on the outcomes of the investigation.