Indian authorities are investigating companies associated with Gautam Adani, the infrastructure tycoon who jumped to the top of the world’s richest list due to the company’s share price during the pandemic.
After the media exposure, Adani Group has been under scrutiny report In June of this year, the country’s largest securities depository froze the accounts held by three Mauritius funds, most of which held shares in Adani.
In a written response to questions raised by opposition politician Mahua Moitra on Monday, India’s Finance Minister Pankaj Choudhary stated that the Securities and Exchange Commission of India (Sebi) “is investigating whether some Adani Group companies comply with Sebi regulations”.
“In addition, the Tax Intelligence Agency (Dri) is investigating certain entities belonging to the Adani Group of Companies under the laws it manages.”
Seby declined to comment. Dri did not respond to a request for comment.
On Monday afternoon, the stock prices of six listed Adani companies fell, and the share price of Adani Gas fell by 5%, the largest drop allowed by exchange rules.
Adani Group stated in a statement: “Although we have been fully complying with applicable Sebi regulations, we have made full disclosure to Sebi in the past regarding their specific information requirements.” “However, we have not received any communications recently. Or information request.”
The group added that five years ago, Dri sent Adani Power a “Notice of Reason for Display” regarding the explanation of the equipment valuation. A spokesperson for the Adani Group stated that the matter is currently being processed in the Dri court and is under trial.
At this month’s annual meetingAdani complained about “reckless and irresponsible reports” and said that “distorted narratives” hit Adani’s stock.Company shares Billionaire Following news reports about the Mauritius Fund, more than US$20 billion in value was lost in five days in June.
Adani has become one of India’s most powerful tycoons, expanding his port empire to different areas at a very fast speed. His team spans natural gas, electricity and minerals, and he is one of the most high-profile figures in the Indian Prime Minister Narendra Modi’s green energy plan.
He invested in airports and data centers, and this month took over Mumbai Airport from the GVK Group. The Adani Group now operates six airports in India and hopes to use it when the country’s hard-hit tourism industry starts to recover from the pandemic.
Analysts said that more information from Sebi is needed to understand the impact of the investigation. “I think we need to wait, we don’t know what this actually means, Sebi said nothing,” said Deepak Shenoy, founder of Capitalmind, a portfolio manager. “This looks more political than anything else.”