India regulator rejects bias in Adani probe

India’s market regulator chief rejected Sunday allegations by US short-seller Hindenburg Research that claimed past offshore investments may have prevented her from properly investigating corporate malfeasance allegations against the Adani Group.

Last year, Adani Group, the sprawling ports-to-power Indian conglomerate, saw billions of dollars wiped from its market value after a bombshell report by the Hindenburg forensic financial research firm accused it of “brazen” corporate fraud.

The family-run conglomerate’s founder, Gautam Adani, the world’s 12th richest person according to a Bloomberg index of the world’s billionaires, denied the allegations made in that report, calling it a “deliberate attempt” to damage its image for the benefit of short-sellers.

Hindenburg claimed that Adani’s elder brother Vinod “manages a vast labyrinth of offshore shell entities” in tax havens including Mauritius, Cyprus and several Caribbean islands.

The fraud claims wiped more than $150 billion off the group’s market value and prompted India’s top court to ask the Securities and Exchange Board of India (SEBI) to probe the allegations.

On Saturday, citing whistleblower documents, Hindenburg accused SEBI chairperson Madhabi Puri Buch and her husband of having held investments in offshore funds that Vinod Adani also allegedly used.

“We suspect SEBI’s unwillingness to take meaningful action against suspect offshore shareholders in the Adani Group may stem from Chairperson Madhabi Buch’s complicity in using the exact same funds used by Vinod Adani, brother of Gautam Adani,” Hindenburg said.