• Hindenburg Research says Adani Group's $310M in Swiss bank accounts has been frozen, citing local news report in Gotham City.
• The Adani Group has denied allegations made by US short-seller Hindenburg Research, calling them "preposterous, irrational, and absurd."

Swiss authorities have frozen over $310 million in bank accounts linked to a money laundering and securities investigation involving the Adani Group, alleged U.S.-based short seller Hindenburg Research, citing local media outlet Gotham City. The group issued a quick denial and called it "preposterous".

In a post on X, Hindenburg stated that the funds, held in multiple Swiss bank accounts, were frozen as part of an ongoing probe into Adani that dates back to 2021. The firm referenced a report from Swiss media outlet Gotham City, which claimed that the Geneva Public Prosecutor's office had been investigating the Indian conglomerate's alleged financial misconduct well before Hindenburg's own accusations surfaced.

According to the Gotham City report, more than $310 million linked to a representative of billionaire Gautam Adani was seized across six Swiss banks. The Office of the Attorney General of Switzerland has since taken over the investigation following media exposure of the case.

Hindenburg first accused the Adani Group of stock market manipulation and financial irregularities in January 2023, sparking global scrutiny of the multinational company.

The Adani Group has categorically denied allegations made by US short-seller Hindenburg Research. The allegations, which the Adani Group has described as preposterous, irrational, and absurd, claimed that Swiss authorities had frozen the company's funds.

The Adani Group's spokesperson, in a statement issued on Thursday, unequivocally rejected these allegations. The spokesperson stated, "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."

Adani Group's Response to Allegations

The spokesperson further clarified that even in the alleged order, the Swiss court has not mentioned their group companies. Moreover, they have not received any requests for clarification or information from any such authority or regulatory body. The spokesperson emphasized, "We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws."

The allegations by Hindenburg Research have been met with strong criticism from the Adani Group, which sees them as an orchestrated attempt to inflict irreversible damage on their reputation and market value. The spokesperson stated, "We have no hesitation in stating that 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."

Historical Similar Events and Market Impact

This is not the first time that Hindenburg Research has made allegations against the Adani Group. Last month, industry experts had slammed earlier allegations by Hindenburg as not merely frivolous but cheap antics.

They pointed out that the US short-seller has nothing substantial to talk about even 18 months later. The Adani Group's response to these allegations is reminiscent of similar instances in the past where companies have faced allegations from short-sellers. One such instance is the case of Nikola Corporation, an American company that specializes in electric and hydrogen fuel cell vehicles.

In September 2020, Hindenburg Research published a report accusing Nikola of fraud. The company denied the allegations, and the ensuing legal battle drew significant media attention.