Hindenburg 'reveals' why SEBI did not take action against Adani Group
America based short-seller firm Hindenburg Research Saturday alleged Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch had a stake in the obscure offshore entities used in the "Adani money siphoning scandal"
[SEBI Chairperson Madhabi Puri Buch (R) with Union Finane Minister Nirmala Sitharaman in a file photo.]
America based short-seller firm Hindenburg Research Saturday alleged Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch had a stake in the obscure offshore entities used in the "Adani money siphoning scandal".
Quoting “whistle-blower documents”, Hindenburg alleged, “SEBI’s Chairperson had stake in obscure offshore entities used in Adani money siphoning scandal”, and this is why SEBI did not take any action against Adani Group based on the research firm’s claims made 18 months ago.
“It has been nearly 18 months since our original report on the Adani Group presented overwhelming evidence that the Indian conglomerate was operating “the largest con in corporate history”.
“Our report exposed a web of offshore, primarily Mauritius-based shell entities used for suspected billions of dollars of undisclosed related party transactions, undisclosed investment and stock manipulation.
“Since then, despite the evidence, along with over 40 independent media investigations corroborating and expanding on our original work, Indian securities regulator SEBI has taken no public action against the Adani Group”, Hindenburg Research said Saturday.
Based on the documents in its possession, Hindenburg said SEBI Chairperson and her husband "had hidden stakes in the offshore having connections with Gautam Adani's brother Vinod Adani."
"What we hadn’t realized: the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani", Hindenburg Research said Saturday.
"Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5th, 2015 in Singapore, per whistleblower documents", it added.
"A declaration of funds, signed by a principal at IIFL states that the source of the investment is “salary” and the couple´s net worth is estimated at $10 million", it said tagging relevant documents.
Before coming out with the full details about its latest allegations, Hindenburg on its X handle had written:
"Something big soon India."
In a shocking claim made in January 2023, Hindenburg Research, which specialises in short selling, accused Adani Group of “brazen stock manipulation and accounting fraud scheme over the course of decades”.
The matter however reached the Supreme Court of India. The apex court had asked the Securities and Exchange Board of India (SEBI) to file status report on the allegations of the American short-seller firm made against Adani Group owned by Gautam Adani who is considered close to Prime Minister Narendra Modi.
Along side, the Supreme Court also ordered a probe into the Adani-Hindenburg controversy and set up an expert committee headed by its retired judge A.M. Sapre.
The Supreme Court of India later said that SEBI had drawn a blank in its investigation of these shareholders, as detailed in the court records.
The Adani Group had refuted all the claims made by the American short-seller. However, the group has so far not commented on the latest allegations.
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