New Delhi: A US-based financial research firm, Hindenburg, has caused a stir with claims that Adani’s stock market rise was based on a sham, with inflated stocks and massive debt.

This has led to a 10 per cent crash in the prices of Adani Group stock, wiping off more than Rs 46,000 crore from the market cap. Adani’s Legal Group Head, Jatin Jalundhwala, responded by stating that they are exploring the relevant provisions of US and Indian law for remedial and punitive action against Hindenburg Research.

The statement also hinted that the firm may have a vested interest in the fall of the Adani shares, as they hold a short position in the Adani Group companies.

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The report accused Adani of manipulating stocks and pulling off accounting fraud, as well as having a current ratio lower than one. It also pointed out that eight out of 22 key figures in the Adani Group are family members, giving disproportionate decision-making power.

Furthermore, it alleged that the offshore fund, Elara, holds Adani shares worth $3 billion and that its former trader revealed that Adani controlled the stocks.

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Moreover, it was noted that the CEO of Elara has worked closely with a fugitive accountant who has been linked to convicted stock market fraudster Ketan Parekh.

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