Latest news with #HindenburgResearch
Russia Today
a day ago
- Business
- Russia Today
US launches new probe into India's Adani over Iran trade
The US Department of Justice has launched a new investigation into Indian billionaire Gautam Adani, alleging potential violations of US sanctions on Iran, the Wall Street Journal reported on Monday. The probe focuses on alleged imports of Iranian liquefied petroleum gas (LPG) into India through Adani's Mundra port, located in the western state of Gujarat. An investigation by the WSJ found that tankers traveling between Mundra and the Persian Gulf often exhibited behavior commonly associated with ships attempting to evade sanctions, prompting further scrutiny into Adani's business dealings. Adani Group said it was not aware of any investigations conducted by the US, calling the report 'baseless and mischievous.' 'Adani categorically denies any deliberate engagement in sanctions evasion or trade involving Iranian-origin LPG. Further, we are not aware of any investigation by US authorities on this subject,' the company said. In May, US President Donald Trump announced that all purchases of Iranian oil and petrochemical products must cease, warning that any country or individual found to be buying these products would be immediately subject to secondary sanctions. The new US probe into one of India's largest conglomerates comes amid intense pressure which Adani has faced over the last two years. It began in 2023, when US investment firm Hindenburg Research released a report alleging that the Adani Group was involved in stock market manipulation. Later that year, similar allegations were raised by the Organized Crime and Corruption Reporting Project, an international platform known for its work on the Panama Papers and Pandora Papers. Hindenburg's report led to a $150 billion loss in Adani's market value and sparked a political storm in India, with opposition parties calling for an investigation into Adani's alleged ties to Indian Prime Minister Narendra Modi. Last year, Hindenburg extended its criticism of the Adani Group to Indian officials, alleging that the head of the country's stock exchange regulator was involved in trading the group's shares, thereby preventing a proper investigation into supposed financial irregularities. Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India, has denied the claims. In November 2024, US prosecutors indicted Gautam Adani and several top managers of his group for allegedly paying $250 million in bribes to Indian government officials to secure 'lucrative' solar power contracts. Adani Group has denied the allegations, calling them 'baseless.' The issue of US pressure on Adani was expected to feature in talks between Modi and Trump when the Indian leader visited Washington in February this year. Modi, however, denied that these discussions took place.
Time of India
3 days ago
- Business
- Time of India
'We never backed down': Gautam Adani says 'Adani Group has become more unbreakable & resilient' amid challenges, scrutiny
This is an AI generated image (left) and Gautam Adani (Right) NEW DELHI: Gautam Adani , Asia's second-richest person, said the Adani Group stayed strong and adapted its strategy despite facing a series of acquisitions and intense scrutiny, becoming stronger and more resilient. "In the face of fierce headwinds and relentless scrutiny - we have never retreated. Instead - we have recalibrated. We have reimagined. And we have become - more formidable, more unbreakable, more stronger and more resilient!" Adani said in the recent annual report of Adani Enterprises. He also announced that the conglomerate plans to invest $15–20 billion over the next five years across its businesses, backed by a strong balance sheet and steady growth. Adani noted that people often ask him "How does Adani Group keep doing it? How do we rise, time and again?" "My answer remains the same: Our conviction is anchored in clarity. Our objectives are aligned with India's ambitions. And our strength comes from the belief that you - our shareholders - place in us," he said. In January 2023, a report by US short-seller Hindenburg Research accused the Adani group of being "the largest con in corporate history," causing stock prices to crash and wiping out over $150 billion in market value. The group's largest public offering was also called off. Adani Group reduced debt, cut back on pledged promoter shares, attracted new investments, and refocused on its core businesses. Just as it began to recover, the group faced fresh allegations from US authorities, accusing it of bribery to win Indian power contracts and misleading investors, during fund raises. Adani Group denied all wrongdoing and said the group had faced challenges before and would face them again. Despite the setbacks, most Adani stocks have rebounded, and the group has reported record earnings. Regarding the US Department of Justice and SEC allegations concerning Adani Green Energy, he asserted that this wasn't their first challenge. "Nor will it be the last," he continued. "Every challenge sharpens our resolve. Every setback becomes a stepping stone," he stated, emphasising that no member of Adani Group faces charges of violating Foreign Corrupt Practices Act (FCPA) or conspiring to obstruct justice. "We live in a world where negativity often echoes louder than truth. But as we cooperate with legal processes, let me also restate - emphatically - our governance is of global standards, and our compliance frameworks are robust and non-negotiable," Adani further added. The conglomerate's diverse portfolio spanning ports, airports, renewable energy, data centres, defence manufacturing, and city gas distribution has demonstrated substantial expansion in recent years. "History should remember us not for the size of our balance sheet, but for the strength of our backbone. Not just for the markets we entered, but for the storms we handled and emerged stronger. For it is easy to lead in sunshine, but true leadership is forged in the face of crisis," he said. Adani also highlighted record profits across the group's ports-to-energy businesses for the financial year 2024–25. He further said that the Adani Airports handled a record 94 million passengers, and the Navi Mumbai Airport is set to open later this year with an initial capacity of 20 million passengers, eventually expanding to 90 million. Adani Defence is developing ammunition and missile systems in Kanpur, and its surveillance and Kamikaze drones played a role in the recent Operation Sindoor, he added. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
3 days ago
- Business
- Business Standard
Adani Group stood firm amid scrutiny, now more formidable: Gautam Adani
Despite facing consecutive acquisitions and intense scrutiny, Adani Group never backed down and instead adapted its strategy, emerging more resilient, formidable and unbreakable, its chairman Gautam Adani said. The conglomerate will invest $15-20 billion over the next five years across businesses, he said touting its strong balance sheet and robust business growth. In January 2023, US short seller Hindenburg Research published a scathing report describing Adani Group as "the largest con in corporate history". The fallout was swift: stock prices plummeted, wiping out over $150 billion in market value at the lowest point, and the group's biggest public offering was abruptly scrapped. Just as the group scripted a comeback through a mix of trimming of debt, cutting back on the founder's pledged shares, bringing in both promoter and marquee investor equity, and refocusing attention on the group's core businesses, it was hit by US authorities charging Adani and his close associates of allegedly paying bribes to secure Indian power supply contracts and misleading US investors during fund raises. Adani Group denied all allegations of wrongdoing and went about refocusing its efforts, resulting in most of its stocks recovering and the group posting record earnings. "In the face of fierce headwinds and relentless scrutiny - we have never retreated. Instead - we have recalibrated. We have reimagined. And we have become - more formidable, more unbreakable, more stronger and more resilient!" Adani said in the latest annual report of the group's flagship Adani Enterprises. Adani, Asia's second-richest, said people often ask him "How does Adani Group keep doing it? How do we rise, time and again?" "My answer remains the same: Our conviction is anchored in clarity. Our objectives are aligned with India's ambitions. And our strength comes from the belief that you - our shareholders - place in us." On the allegations by the US Department of Justice and the US SEC relating to Adani Green Energy, he said this was not the first time the conglomerate was tested. "Nor will it be the last". "Every challenge sharpens our resolve. Every setback becomes a stepping stone," he said adding despite all the noise, fact is that none from Adani Group has been charged with violating Foreign Corrupt Practices Act (FCPA) or conspiring to obstruct justice. "We live in a world where negativity often echoes louder than truth. But as we cooperate with legal processes, let me also restate - emphatically - our governance is of global standards, and our compliance frameworks are robust and non-negotiable." Group's businesses - from ports to airports, from renewable energy generation to data centres, defence manufacturing and city gas - have grown over the past couple of years. "History should remember us not for the size of our balance sheet, but for the strength of our backbone. Not just for the markets we entered, but for the storms we handled and emerged stronger. For it is easy to lead in sunshine, but true leadership is forged in the face of crisis," he said. Strength is not just power - it is purpose, clarity and the will to rise. And resilience is not endurance alone - it is reinvention in the face of adversity. "When combined, it helps us do our part for building an India that refuses to bend, refuses to break and never stops believing in its own future," he said. Adani went on to tout record profits of his ports-to-energy companies posted in fiscal year 2024-25. "And while the numbers tell their own compelling story - in a year of record-breaking revenue, unprecedented growth and historic profitability - the deeper truth is that these milestones are reflections of our relentless strength and tenacity. They are proof of a Group that dares to dream beyond constraints, powered by a nation that breathes possibility into every tomorrow ahead of us," he said. Adani Power crossed 100 billion units of power generation, added 2.3 gigawatt (GW) of conventional capacity, funded Rs 12,000 crore in capex mainly through internal accruals, and secured a 1,500 megawatt power supply deal in Maharashtra. It is now well on track to reach 31 GW capacity by 2030. Adani Green reached an operational renewable energy (RE) capacity of over 14 GW and is on target to build the world's largest RE plant of 30 GW at Khavda in Gujarat and a total of 50 GW of renewables capacity by 2030. Also, with over 5,000 MW of pumped hydro storage targeted to be installed by 2030 and a 40-year 1,250 MW energy storage deal with Uttar Pradesh, it is setting global benchmarks in the space of energy transition, he said. Adani Energy Solutions had a huge year, securing Rs 43,990 crore in transmission orders and executing Rs 13,600 crore worth of smart metering projects. It retained its No.1 electricity distribution company rank in India and became the only private player with three national HVDC grid links in its portfolio. Clean energy vertical Adani New Industries has an order book for construction of a 300 MW electrolyser plant and is on track to expanding its solar module manufacturing lines to 10 GW integrated by next financial year. Adani Ports handled an all-time high cargo volume of 450 million tonne and cornered 27 per cent market share in India. The group is building data centres, rapidly expanding city gas and EV charging network and rebuilding Mumbai's Dharavi - Asia's largest slum. "Over 1 million people will move from narrow lanes to sunlit, modern homes," he said on Dharavi redevelopment. "Inspired by Singapore's housing model and co-designed with global experts, the township will feature spacious layouts, dual toilets, open spaces, schools, hospitals, transit hubs and parks." Adani Natural Resources produced a record 47 MT coal and iron ore and is on track to achieve over 30 per cent growth by FY26, he said. Group's copper plant in Kutch, Gujarat has started while the cement business has crossed 100 MTPA capacity and is on track to hit 140 MT by 2027-28, he said. Adani Airports handled a record 94 million passengers across airports it manages, he said adding Navi Mumbai Airport will open later this year with an initial passenger capacity of 20 million of what will eventually become a 90 million passenger airport. Adani Defence is making ammunition and missile capabilities in Kanpur while its surveillance drones and Kamikaze drones aided the recent Operation Sindoor, he said.
Reuters
6 days ago
- Business
- Reuters
Adani Ports' bond sale draws LIC interest on India market return, sources say
MUMBAI, May 29 (Reuters) - Adani Ports and Special Economic Zone ( opens new tab, India's largest private port operator, has placed its longest-tenor debt with state-run Life Insurance Corporation of India ( opens new tab, two sources familiar with the matter said on Thursday. The company raised 50 billion rupees ($585.33 million) through the sale of bonds maturing in 15 years at 7.75% annual coupon and the debentures were fully bought by LIC, the sources said, declining to be identified as they are not authorised to speak to the media. The bonds were issued at the lowest spread over the corresponding government bond yield in the last seven years. LIC and Adani Ports did not immediately respond to Reuters emails seeking comments. The issue marked Adani Ports' largest rupee-denominated bond and its first market return since January 2024, after Adani group companies pulled back following U.S. short-seller Hindenburg Research's 2023 allegations of governance lapses. Adani Group has denied those allegations. Adani Ports has outstanding bonds worth around 62.50 billion rupees as of end-April, according to notes from rating agencies. Holding around 54 billion rupees of debt, LIC was the largest holder of bonds of the company as of January 2024, according to an information memorandum of its January 2024 debt issue. Adani Ports raised 2.5 billion rupees each via five- and 10-year bonds at coupons of 8.70% and 8.80%, respectively, in January 2024. Last week, its board approved raising up to 60 billion rupees through bond sales, with the notes rated AAA by Crisil and Care. With the Adani Ports issue completed, more group companies are likely to tap local debt market, especially as yields are set to decline further due to policy rate cuts and surplus liquidity, two bankers said, declining to be named since they are not authorised to speak to media. ($1 = 85.4225 Indian rupees)
Mint
6 days ago
- Business
- Mint
Mint Explainer: Why Lokpal cleared former Sebi chief Buch of corruption charges?
Anti-corruption ombudsman Lokpal on Wednesday dismissed three complaints against former chairperson of the Securities and Exchange Board of India (Sebi) Madhabi Puri Buch that were largely based on a 2024 report by Hindenburg Research. The Lokpal said it found no merit in the allegations of corruption and termed the complaints 'vexatious" and based on "presumptions". The ombudsman's order said there was no credible evidence of wrongdoing or conflict of interest by Buch or her husband. Mint explains the allegations, what the independent statutory body found, and what it means for future cases. What were the allegations against former Sebi chief Buch? The complaints were filed between August and October 2024 by different individuals, including Trinamool Congress parliamentarian Mahua Moitra. All three cited a 10 August 2024 Hindenburg Reasearch report that questioned Sebi's actions under Buch's tenure. Complainants alleged Buch failed to disclose a ₹5 crore investment in a fund linked to the Adani Group, received consultancy and rental income from entities under Sebi scrutiny, and profited from ICICI Bank employee stock ownership (Esops) while the bank faced regulatory action. Also Read | Madhabi Puri Buch's Sebi tenure: A legacy of reform, controversy, and resistance What did the Lokpal find and what did it note in its order? The Lokpal dismissed all allegations, finding no prima facie evidence of an 'offence of corruption" under the Prevention of Corruption Act. It noted that Buch and her husband had invested in Global Dynamic Opportunities Fund (GDOF) in 2015, two years before she joined Sebi. Their investment was unrelated to Adani-linked sub-funds and was fully redeemed in 2018, before Sebi's Adani investigation began in 2020. The Supreme Court had already found Sebi's Adani probe to be fair and comprehensive. The Lokpal also rejected allegations of document redaction, calling the claim an indirect challenge to the apex court's findings. On the charge of conflict of interest regarding Mahindra Group, the Lokpal noted that Buch had recused herself from matters relating to the group in 2019. Her husband, Dhaval Buch, received ₹4.78 crore in consultancy fees from Mahindra between 2019 and 2021, but the Lokpal found no link between this and regulatory decisions, which were handled by others at Sebi. Similar charges were raised around Blackstone Inc. and its Reit licences. However, the Lokpal observed that Blackstone's registrations predated Buch's tenure as chairperson, and she had no involvement in subsequent approvals. The Lokpal ruled that the ₹16.8 crore Buch earned from ICICI Bank Esops after joining Sebi was part of her past service package. There was no evidence linking these to any favourable treatment by Sebi, which had acted through independent committees in all ICICI-related matters. The Lokpal found the complaints to be speculative, and lacking verifiable facts. 'The complaints were essentially founded on the Hindenburg report of 2024, by a known short seller trader whose focus was to expose or corner Adani Group of companies. That report, by itself, cannot be made the sole basis to escalate action against Buch," the order said. 'The allegations in the complaints are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences to direct an investigation." What does this mean for Sebi? The order effectively clears Buch of corruption allegations linked to the second Hindenburg report. Legal experts say the complaints nevertheless pushed Sebi's internal governance under greater scrutiny. 'Public confidence is more a matter of perception than a regulatory issue. Clean chit or no clean chit, the confidence of public has been taken care of with the complaint and necessary actions have already been invoked by the current regime," said Aditya Bhansali, founding partner at Mindspright Legal. Following Buch's departure, Sebi set up a high-level committee under new chairman Tuhin Kanta Pandey to overhaul its conflict-of-interest framework. The committee, which first met on 16 May, is evaluating public disclosure norms for board members' commercial interests, trading restrictions, recusal procedures, and even an ombudsman mechanism. Bhansali noted that Sebi's earlier code of conduct was inadequate for the Buch-era controversies. 'It is not the order," he said, 'but the complaint filed by the complainants that sparked the necessity of implementation of the rules or code in order to avoid the conflict of interest." Also Read: After Madhabi Puri Buch, will Sebi have a bureaucrat at its helm? Can the Lokpal's order be challenged? While the Lokpal Act provides no direct appeal mechanism, parties may approach the Supreme Court or a high court under writ jurisdiction. 'Courts are generally cautious in interfering with findings of quasi-judicial bodies like the Lokpal," said Hardeep Sachdeva, senior partner at AZB & Partners. 'A challenge would typically have to demonstrate that the order was perverse or manifestly arbitrary; it violates principles of natural justice, or it contains certain significant procedural irregularities." Has Lokpal acted against senior officials before? Yes. In 2021, the Lokpal ordered a probe into corruption charges against the then director general of the National Research Laboratory for Conservation of Cultural Property, leading to a CBI case. It also passed an order against a high court judge over alleged undue influence. However, the Supreme Court stayed that order, raising concerns over the Lokpal's interpretation of its jurisdiction in such cases. ===================== Anti-corruption ombudsman Lokpal on Wednesday dismissed three complaints against former chairperson of the Securities and Exchange Board of India (Sebi) Madhabi Puri Buch, finding no merit in allegations of corruption. The complaints were largely based on a 2024 report by Hindenburg Research. The Lokpal called the complaints 'vexatious" and 'based on presumptions", finding no credible evidence of wrongdoing or conflict of interest by Buch or her husband, in the order of May 28. Mint breaks down the allegations, why the Lokpal found them baseless and whether this order can be challenged and how the Lokpal, an independent statutory body, has looked at past high-profile complaints. What were the complaints about? The complaints were filed between August and October 2024 by different individuals, including MP Mahua Moitra. All three cited a 10 August 2024 Hindenburg report that questioned Sebi's actions under Buch's tenure. Complainants alleged Buch failed to disclose a ₹5 crore investment in a fund linked to Adani Group, received consultancy and rental income from entities under Sebi scrutiny, and profited from ICICI Bank ESOPs while the bank faced regulatory action. What did the Lokpal find? The Lokpal dismissed all allegations, finding no prima facie evidence of an 'offence of corruption" under the Prevention of Corruption Act. It noted that Buch and her husband had invested in Global Dynamic Opportunities Fund (GDOF) in 2015, two years before she joined Sebi. Their investment was unrelated to Adani-linked sub-funds and was fully redeemed in 2018—before Sebi's Adani investigation began in 2020. The Supreme Court had already found Sebi's Adani probe to be fair and comprehensive. The Lokpal also rejected allegations of document redaction, calling the claim an indirect challenge to the apex court's findings. On the charge of conflict of interest regarding Mahindra Group, the Lokpal noted that Buch had recused herself from matters relating to the group in 2019. Her husband, Dhaval Buch, received ₹4.78 crore in consultancy fees from Mahindra between 2019–2021, but the Lokpal found no link between this and regulatory decisions, which were handled by others at Sebi. Similar charges were raised around Blackstone Inc. and its REIT licences. However, the Lokpal observed that Blackstone's registrations predated Buch's tenure as chairperson and she had no involvement in subsequent approvals. As for the ₹16.8 crore Buch earned from ICICI Bank ESOPs after joining Sebi, the Lokpal ruled these were part of her past service package. There was no evidence linking these to any favourable treatment by Sebi, which had acted through independent committees in all ICICI-related matters. What is the Lokpal's final word? The Lokpal found the complaints to be speculative, lacking verifiable facts. 'The complaints were essentially founded on the Hindenburg report of 2024, by a known short seller trader whose focus was to expose or corner Adani Group of companies. That report, by itself, cannot be made the sole basis to escalate action against Buch," the order said. It added, 'The allegations in the complaints are more on presumptions and assumptions and not supported by any verifiable material and do not attract the ingredients of the offences to direct an investigation." What does this mean? The order effectively clears Buch of corruption allegations linked to the second Hindenburg report. Legal experts say the complaints nevertheless pushed Sebi's internal governance under greater scrutiny. 'Public confidence is more a matter of perception than a regulatory issue. Clean chit or no clean chit, the confidence of public has been taken care of with the complaint and necessary actions have already been invoked by the current regime," said Aditya Bhansali, founding partner at Mindspright Legal. Following Buch's departure, Sebi set up a high-level committee under new chairman Tuhin Kanta Pandey to overhaul its conflict-of-interest framework. The committee, which first met on 16 May, is evaluating public disclosure norms for board members' commercial interests, trading restrictions, recusal procedures, and even an ombudsman mechanism. Bhansali noted that Sebi's earlier code of conduct was inadequate for the Buch-era controversies. 'It is not the order," he said, 'but the complaint filed by the complainants that sparked the necessity of implementation of the rules or code in order to avoid the conflict of interest." Can the Lokpal's order be challenged? While the Lokpal Act provides no direct appeal mechanism, parties may approach the Supreme Court or a High Court under writ jurisdiction. 'Courts are generally cautious in interfering with findings of quasi-judicial bodies like the Lokpal," said Hardeep Sachdeva, senior partner at AZB & Partners. 'A challenge would typically have to demonstrate that the order was perverse or manifestly arbitrary; it violates principles of natural justice, or it contains certain significant procedural irregularities." Has Lokpal acted against senior officials before? Yes. In 2021, the Lokpal ordered a probe into corruption charges against the then DG of the National Research Laboratory for Conservation of Cultural Property, leading to a CBI case. It also passed an order against a High Court judge over alleged undue influence. However, the Supreme Court stayed that order, raising concerns over the Lokpal's interpretation of its jurisdiction in such cases.
