US Dismisses Hindenburg Allegations Against Adani Firm as Irrelevant
US Dismisses Hindenburg Allegations Against Adani Firm as Irrelevant

The US government has dismissed allegations made by short-seller Hindenburg Research against Gautam Adani's firm as "irrelevant" and stated that they did not influence the decision to grant $553 million for a Sri Lankan terminal. A senior US official clarified that the accusations of corporate fraud against Adani Group Chairman Gautam Adani were not considered impactful by US authorities.

According to a Bloomberg News report, the International Development Finance Corp. (DFC) conducted a thorough investigation into the conglomerate, with the Hindenburg Research allegations being a focal point. However, the DFC reportedly concluded that the claims made by the short-seller were not applicable to Adani Ports & Special Economic Zone Ltd., the subsidiary leading the Sri Lankan project.

The official informed Bloomberg News that while the US agency will continue monitoring the Adani group company to prevent unintentional support for financial misconduct or inappropriate behavior, they were satisfied that the allegations did not hold against the subsidiary spearheading the Sri Lankan venture.

In November, the US International Development Finance Corporation announced its $553 million investment in the Adani Ports-led container terminal project in Colombo, emphasizing its strategic importance in serving the region's growing economies due to Sri Lanka's advantageous location along major shipping routes.

Back in September 2021, Adani Ports sealed a $700-million deal with the Sri Lanka Ports Authority (SLPA) and Sri Lankan conglomerate John Keells Holdings to collaboratively develop the terminal.

The Adani Group had been under scrutiny since January 2023 when Hindenburg Research alleged corporate misgovernance among other charges. The report highlighted significant reserves in Adani Ports, questioning stock price surges in seven key Adani listed companies, including Adani Ports, over the past three years.

Following the Hindenburg report, Deloitte resigned as Adani Ports' auditor in August, citing concerns about certain transactions. However, the Adani Group has consistently denied the allegations raised in the Hindenburg report.

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