Adani Group Vigorously denied a subsequent article in the Financial Times, stating that it was an effort to raise outdated and baseless allegations in order to tarnish the firm’s name and reputation. The company has accused the report of being part of a wider campaign aimed at promoting vested interests under the pretense of public concern.Thank you for reading this post, don't forget to subscribe!
What occurred: Adani Group has stated that in collaboration with the business publication george sorosfunded Organized Crime and Corruption Reporting Project (OCCRP), they had previously released a “false story” against the group on August 31. Now, they are making another attempt to destabilize the company financially by resurrecting the old claim of overbilling for coal imports.
The company mentioned that the upcoming story in the FT references a circular dated March 30, 2016, from the Directorate of Revenue Intelligence (DRI).
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Adani’s argument: The Adani Group argues that the agenda of FT is evident as the circular mentions 40 importers, including Adani Group companies, rather than singling out the Adani Group. The list includes several prominent private power generators in India, such as Reliance Infra, JSW Steels, and Essar, as well as state power generation companies and NTPC and mstc.
Adani Group gained attention knowledge infrastructureas one of the 40 importers mentioned in the circular. The show cause notice alleging overvaluation in coal imports from DRI was dismissed by the Appellate Tribunal (CESTAT). DRI’s appeal was rejected by the Supreme Court on January 24, 2023. According to Adani Group, this decisively resolves the issue of overvaluation in coal imports.
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The Adani Group presents the proposed story in FT as a recycling and selective distortion of publicly available facts, accompanied by deliberate suppression of judicial decisions. It claims that the story demonstrates a lack of respect for India’s regulatory and judicial processes and authorities.
Adani Group denounced the allegations and accused foreign entities, short-sellers, domestic associates, and certain sections of the foreign media of launching a coordinated attack to damage the group’s market value. The statement also suggested that these allegations often coincide with important court hearings in India.
why it matters: Adani’s statement directly mentions the journalist Dan McCrum, who exposed the financial fraud in the payments firm wirecard, which turned out to be the largest scam in German history.
on commentators x, there have been suggestions that Adani could face similar scrutiny after the article is published, further intensifying pressure on the group’s shares, which were affected by the allegations made by the short-seller Hindenburg Research.
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