SEBI Requests Key Documents from OCCRP for Adani Probe

18 Oct 2023 , 11:28 AM

Securities and Exchange Board of India seeks documents from OCCRP (Organized Crime and Corruption Reporting Project) for its investigation into the Adani-Hindenburg case.

OCCRP had previously referenced these documents in a report on the Adani conglomerate. OCCRP declined to provide the requested documents to SEBI. OCCRP is a network of investigative reporters supported by entities like the United States Department of State and George Soros.

SEBI’s request comes ahead of an upcoming Supreme Court hearing on the Adani-Hindenburg case. The investigative journalism group alleged that the Adani conglomerate routed funds to foreign individuals to invest in its shares through Mauritius-based platforms. OCCRP stated its policy of not providing documents beyond what it publishes.

Advocate Prashant Bhushan, representing one of the petitioners in the case, has access to some of the documents and had tweeted a key document revealing a warning to SEBI by the Directorate of Revenue Intelligence in 2014.

The warning accused Adani of siphoning off money by overvaluing power equipment imports and investing in listed companies via entities in Mauritius and Dubai.

SEBI faces challenges in establishing the economic interest of shareholders linked to foreign portfolio investors in Adani companies located in tax havens. The Adani Group has consistently denied the allegations and claims to be a victim of a smear campaign.

Despite challenges in obtaining information from foreign jurisdictions, SEBI has not responded to queries.

The OCCRP report in August alleged that investors used offshore structures to trade Adani shares based on internal emails and files from tax havens. These allegations surfaced after a report by US-based short-seller Hindenburg Research in January, leading to a decline in Adani Group’s shares.

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