As many as seven Adani Group stocks closed lower on Friday after Swiss authorities froze $311 million (Rs 2,610 crore) held by a Taiwanese resident across multiple Swiss bank accounts. The freeze is part of a money laundering investigation, with suspicions that the individual may be acting as a front for the group, an allegation the conglomerate has firmly denied.
In a post on X, the US-based short-seller Hindenburg alleged late Thursday that the case involves an “Adani frontman” and funds held in the British Virgin Islands, Mauritius, and Bermuda, citing court records and a Swiss media report.
“Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021,” Hindenburg said.
Shares of Adani Enterprises, Adani Ports and Special Economic Zone, Adani Green Energy, Adani Total Gas, Adani Wilmar, Adani Energy, and Ambuja Cements fell between 0.4-2% on Friday.
In response, Adani Group denied the claims, calling them “baseless.” The company said that none of its accounts had been frozen and that it had no involvement in Swiss court proceedings.
The group termed these allegations as “preposterous, irrational, and absurd.” It said that its overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws. “We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value,” the statement said.
Swiss prosecutors are said to be investigating an unnamed individual acting as a front for an unnamed company, potentially evading Indian regulations around ownership in public companies. A ruling by the Swiss Federal Criminal Court suggested this scheme might have been used to circumvent Indian rules limiting company founders’ stakes in publicly traded units.
Hindenburg suggested the unidentified company could be connected to Adani group–a charge the conglomerate vehemently denied.
“Even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body,” the Adani group’s spokesperson said.
This is not the first time Adani Group has faced scrutiny from Hindenburg. The short seller made waves last year, accusing the Indian conglomerate of stock manipulation and accounting fraud—claims Adani has firmly denied. While the stock initially plunged, Adani’s shares have largely recovered, though legal concerns still remain.