By Jayantha Das – India
AITUC Demands Special investigation on “Hindenburg Research” Which claimed Adani Group had committed ‘brazen’ corporate fraud of over $48bn in stocks.
AITUC demands investigation of Hindenburg Research Report on Adani Group
In a shocking revelation Hindenburg Research, an investment research firm has published a research report on Adani Group claiming that the conglomerate has engaged in “brazen stock manipulation and accounting fraud scheme over the course of decades”. Presenting evidence the report says that the seven listed companies of Adani Conglomerate are 85% over valued.
Report of the Hindenburg research is of a serious nature. The report has come out with substantiating evidences of accounting fraud and stock manipulation. It goes on to allege that inflated stock values are pledged with the banks to raise loans. The report also claims to have investigated a complex web of offshore entities and shell entities linked to Adani group. If the allegations are proved to be true, the ramifications will be very serious given the size of stocks involved.
Reported stock manipulations and accounting frauds, if proved true, will involve the support and connivance of the government and its departments. The report has also brought to scrutiny the role of India’s capital market regulator the Securities and Exchange Board of India and the Reserve Bank of India, the central regulatory body.
Gautam Adani’s meteoric rise in the year 2021-22 even while Indian economy was in doldrums cannot but be missed in the background of this report. Whole phenomenon unleashes the crude reality as to how crony capitalism perniciously plunders the economy. This is a classic case to illustrate how the fortunes of the friends of Prime Minister and the government hinge on the access to resources and departments that are controlled by the government.
There can be no smoke without fire. The report of such grave fraud and manipulations that will drastically impact the stock market and economy cannot be ignored.
It is being reported that desperate attempts are being made to shore up plummeting Adani shares and LIC of India has ‘offered’ to buy those shares. The complicity of powers-that-be cannot be missed. This is throwing good money after bad, at the expense of the common people.
All India Trade Union Congress demands an investigation on the report of Hindenburg Research.
