Swiss Authorities Freeze $310 million Linked to Indian Billionaire's Adani Group Over New Fraud Allegations

by: Horn Observer Contributor | 14 September 2024 03:27

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Swiss Authorities Freeze $310 million Linked to Indian Billionaire's Adani Group Over New Fraud Allegations

GENEVA, Switzerland (HORN OBSERVER) - Swiss authorities have frozen over approximately $310 million from several bank accounts linked to India's Adani Group, as part of an ongoing probe into allegations of financial misconduct.

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The Indian billionaire Gautam Adani's firm has denied these fresh allegations.

GENEVA, Switzerland (HORN OBSERVER) - Swiss authorities have frozen over approximately $310 million from several bank accounts linked to India's Adani Group, as part of an ongoing probe into allegations of financial misconduct.

The move follows resurfacing accusations related to money laundering, fraud, and stock manipulation—claims that first emerged in 2023, when Hindenburg Research published a damning report on Adani.

The Indian billionaire Gautam Adani's firm has denied these fresh allegations.

The investigation is not limited to Swiss accounts, as Adani Group is also under scrutiny in other jurisdictions, including Kenya, where it is bidding to manage Nairobi's Jomo Kenyatta International Airport (JKIA).

In January 2023, Hindenburg Research, a U.S.-based short-seller, published a report alleging that Adani Group had engaged in stock manipulation, accounting fraud, and other financial malpractices over the years.

The report triggered widespread concern and led to a significant drop in Adani's stock prices, wiping billions off the conglomerate’s market value.

These allegations suggested that Adani used offshore entities to artificially inflate its stock prices, and that the company’s actual financial health was far worse than portrayed. The Swiss government's recent freezing of the Sh40 billion linked to Adani suggests that authorities are now paying closer attention to these claims.

Adani Group has consistently denied the allegations, calling them "baseless" and "malicious." The company argues that the Hindenburg report was intended to damage its reputation and profit from a drop in stock prices. Despite these denials, the freezing of funds adds a layer of complexity to the legal battles the group now faces globally.

Implications for Kenya

Adani's growing involvement in Kenya has also drawn attention, especially in light of its bid to manage Nairobi’s JKIA, one of East Africa's busiest airports.

The potential deal has raised eyebrows, as critics question whether Adani, already under scrutiny for its business practices, should be entrusted with such a critical piece of infrastructure.

Moreover, Kenyan aviation authorities are concerned about the transparency of the bidding process, given the ongoing investigations into Adani.

The controversy surrounding Adani's possible control of JKIA comes at a sensitive time for Kenya, as the country seeks foreign investment to modernize its infrastructure. However, the freezing of Adani-linked funds in Switzerland has added to the already growing skepticism over the company’s operations.

The freezing of Adani's assets in Switzerland could have far-reaching implications beyond India and Kenya.

Several international financial institutions have begun to reassess their ties with Adani Group in light of the resurfacing fraud allegations.

Investors are increasingly wary of the conglomerate's financial stability and governance practices, which could lead to significant capital outflows and a potential loss of business opportunities for the group.

While Adani continues to deny wrongdoing, the Swiss action shows that global authorities are now treating the allegations with a new sense of urgency.

The freezing of $310 million in Swiss bank accounts could mark the beginning of more in-depth investigations in other jurisdictions where the conglomerate operates, leading to potential financial and reputational risks for the group.