The Securities and Exchange Commission (SEC) in the United States and the Attorney's Office in Brooklyn, New York, have initiated an inquiry into the statements made by the Adani Group to its American investors following a report released by short-seller Hindenburg, according to a Bloomberg report.

Hindenburg Research published a report earlier this year, alleging that the companies under the control of Gautam Adani, the chairman of the Adani Group, engaged in the manipulation of share prices through the use of offshore entities. The report also raised concerns about the substantial debt and the subsequent erosion of $11 billion in investor wealth.

Sources cited in the report have revealed that the Attorney's Office in Brooklyn and the SEC have contacted institutional investors who hold significant stakes in the Adani Group, requesting information regarding the details provided by the group to American investors. The SEC has independently launched its own investigation in recent months, as confirmed by two additional sources disclosed to Bloomberg.

It is important to note that requests for information from US prosecutors do not automatically indicate the initiation of criminal or civil proceedings. Law enforcement agencies often open inquiries that may not result in legal action being taken. A spokesperson for the Adani Group informed Bloomberg that the group is not aware of any subpoenas issued to its investors.

The Gautam Adani-led Adani Group is already subject to regulatory scrutiny within India. In May, the Securities and Exchange Board of India (SEBI) conducted an investigation into alleged violations related to the group's overseas investments, but the efforts yielded no substantial findings. In a court filing, SEBI denied any previous investigation into the Adani conglomerate and dismissed the allegations as baseless.

Additionally, an Expert Committee, established to investigate potential regulatory failures in handling alleged violations by the Adani Group and other companies, expressed uncertainty about the outcome of its ongoing investigation. The committee suggested that the case might be a lengthy process with no clear resolution in sight.

Reliance tops Hurun's list of Top Cos, Adani value drops 52%

Adani Enterprises Forays into Online Train Ticket Booking Business, Challenges IRCTC