Despite the ongoing investigation and media scrutiny, the Adani Group remains firm in its stance, emphasizing its commitment to transparency and regulatory compliance.
Geneva, September 14, 2024 – Swiss authorities have frozen $311 million (approximately ₹2,610 crore) held by a Taiwanese resident in multiple Swiss bank accounts, amid an ongoing money laundering investigation. The funds are suspected to be linked to an alleged proxy of the Adani Group, a charge the Indian conglomerate strongly denies.
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| Gautam Adani, chairman, Adani Group [ Photo: Narendra Bisht/ Fortune India] |
The freeze follows a report by Hindenburg Research, the US-based short-seller that previously criticized the Adani Group in a high-profile report last year. This report claimed that newly released Swiss criminal records indicate that Swiss authorities have been investigating alleged financial misconduct involving the Adani Group since 2021.
According to Hindenburg Research, the investigation centers on Chang Chung-Ling, whom Swiss prosecutors believe might be a front for the Adani Group. The funds in question are reportedly tied to investments in opaque entities based in the British Virgin Islands, Mauritius, and Bermuda, which predominantly held Adani stocks.
The Adani Group has categorically rejected these allegations, asserting that it has no involvement in any Swiss court proceedings and that none of its accounts have been subject to sequestration. The conglomerate described the allegations as “preposterous, irrational, and absurd,” and asserted that this is part of an ongoing attempt to damage its reputation.
“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 company stated in a press release.
Swiss media outlet Gotham City reported that the Geneva Public Prosecutor’s Office has been investigating Chang Chung-Ling and has sequestered the $310 million across five Swiss banks over the past three years. The Federal Criminal Court’s ruling, published on September 10, 2024, cites the Adani Group as being under suspicion of illicit activities, including money laundering and embezzlement, though the Group has not been directly mentioned in the court documents.
Chang Chung-Ling’s name first emerged in the 2023 Hindenburg report, which alleged stock market manipulation and accounting fraud within the Adani Group. According to the report, Chang Chung-Ling was involved in substantial financial transactions through offshore funds, and his entities, including Growmore—a Mauritius-based company—were implicated in stock market manipulations.
Hindenburg’s report also highlighted that Chang Chung-Ling’s son, Chang Chien-Ting, was linked to PMC Projects (India), one of several firms investigated by the Securities and Exchange Board of India (SEBI) over related-party transactions. The results of SEBI’s probe remain undisclosed.
Despite the ongoing investigation and media scrutiny, the Adani Group remains firm in its stance, emphasizing its commitment to transparency and regulatory compliance. The company has pledged to cooperate fully with any relevant authorities and continues to assert that its financial operations are legitimate and within legal boundaries.
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