Swiss authorities freeze over $310 million in Adani-linked funds amid money laundering probe

Swiss authorities have frozen more than $310 million held in multiple Swiss bank accounts as part of an ongoing investigation into alleged money laundering and securities forgery involving the Adani Group.

According to recent information revealed by Hindenburg Research, the investigation, which dates back to 2021, has unearthed suspicious investments made by a frontman linked to billionaire Gautam Adani.

The funds, reportedly sequestered across six Swiss banks, are believed to have been funnelled into opaque entities based in the British Virgin Islands, Mauritius, and Bermuda.

These offshore funds primarily held shares of Adani Group companies, according to Swiss criminal court documents. The revelations were first reported by Swiss media outlet Gotham City and later cited by Hindenburg in a post on the social media platform X.

According to the report, the Geneva Public Prosecutor’s Office had initiated investigations into Adani's business dealings long before Hindenburg Research published its scathing report on January 24, 2023, accusing the Adani Group of extensive fraud.

The Office of the Attorney General of Switzerland (OAG) has since taken over the case, underscoring the serious nature of the allegations.

Hindenburg’s latest post highlighted the Swiss court’s findings, stating that the alleged frontman’s investments in the offshore funds were almost exclusively focused on Adani stocks.

The Geneva Public Prosecutor’s investigation into these transactions reportedly began before the now-infamous Hindenburg report titled ”Adani Group: How the World’s 3rd Richest Man Is Pulling the Largest Con in Corporate History.”

In a statement, the Adani Group strongly refuted the allegations labelling the claims as “baseless, preposterous, irrational, and absurd.”

“We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority,” the statement read.

The group emphasised that no Swiss court order has mentioned its companies, nor has it received any inquiries or requests for information from any regulatory body.

“Even in the alleged order, the Swiss court has neither mentioned our group companies nor requested any clarification or information from us," the company said.

The Adani Group also reiterated that its overseas holding structure is fully transparent, compliant with all relevant laws, and fully disclosed.

“These allegations are clearly preposterous, irrational, and absurd. This is yet another orchestrated and egregious attempt by the same cohorts, acting in unison, to inflict irreversible damage on our group’s reputation and market value,” the statement concluded.

On Thursday, 12 September, Adani Enterprises shares had closed 1.84 per cent higher at Rs 2,991.40, up from Rs 2,937.35 in the previous trading session. Hindenburg’s latest post was released after the market had closed for the day.

This latest development adds another layer to the ongoing legal and financial battles facing the Adani Group, as global authorities continue to scrutinise the conglomerate’s financial dealings.