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The Adani Group, an Indian conglomerate, has found itself embroiled in another financial controversy as Swiss authorities have frozen $311 million in multiple Swiss bank accounts belonging to a Taiwanese resident, Chang Chung-Ling, suspected of being a front for the group. This move comes amidst an ongoing money laundering investigation, raising further questions about the Adani Group's financial dealings and the allegations of fraud leveled against them last year by the U.S.-based short-seller, Hindenburg Research.
Hindenburg Research, which previously accused the Adani Group of stock market manipulation, accounting fraud, and money laundering in a scathing report that wiped out $150 billion in market value, has cited Swiss criminal records reported by the Swiss media outlet Gotham City. According to these records, the Geneva Public Prosecutor's Office is investigating alleged wrongdoing by Chang Chung-Ling, who they believe is acting as a proxy for Gautam Adani, the billionaire founder of the Adani Group. Over the past three years, Swiss authorities have seized over $310 million held in five Swiss banks under Chung-Ling's name.
The Adani Group vehemently denies any involvement in the Swiss court proceedings and claims that none of their company accounts have been subject to sequestration. They reiterate that their overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws. They further dismiss the allegations as baseless and a concerted effort to damage their reputation and market value.
However, Hindenburg Research maintains their stance, citing detailed court records showing how Chung-Ling invested in opaque funds based in the British Virgin Islands, Mauritius, and Bermuda, which predominantly owned Adani stock. These funds, according to Hindenburg, are indicative of a deliberate attempt to conceal the true ownership and origin of the funds. The allegations against the Adani Group stem from a 2023 report by Hindenburg, which accused them of manipulating stock prices, engaging in accounting fraud, and laundering money through offshore entities. These claims have been repeatedly denied by the Adani Group.
The investigation in Switzerland is ongoing, and it remains to be seen if the frozen funds are indeed linked to the Adani Group. However, the allegations raise serious concerns about the transparency of the Adani Group's financial dealings and the potential for illicit activities. The Swiss authorities' actions highlight the importance of investigating suspected financial misconduct, particularly when it involves complex offshore financial networks.
Source: Swiss authorities freeze $311 million of alleged Adani proxy; Adani Group denies any link