Adani Group's 413-page response 'largely confirmed findings, ignored key questions': Hindenburg

New York-based short seller Hindenburg Research has responded to Adani Group's 413-page riposte, saying "fraud cannot be obfuscated by nationalism or a bloated response that ignores every key allegation it originally raised". The firm said that it believed India was a vibrant democracy and an emerging superpower with an exciting future and it was Adani Group which was holding it back through "systematic loot".

Hindenburg in its response released on January 29, pointed out that only 30 pages of Adani’s 413-page response focused on "issues related to our report". The response, it said, "largely confirmed Hindenburg's findings and ignored key questions".

"In terms of substance, Adani’s ‘413 page’ response only included about 30 pages focused on issues related to our report," Hindenburg said. "...we note that the core allegations of our report – focused on numerous suspect transactions with offshore entities – were left completely unaddressed," it added.

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Hindenburg said that the remainder of the response consisted of 330 pages of court records, along with 53 pages of high-level financials, general information, and details on irrelevant corporate initiatives, such as how it encourages female entrepreneurship and the production of safe vegetables. It said that Adani failed to specifically answer 62 of 88 questions asked in its initial report.

"Adani failed to specifically answer 62 of our 88 questions. Of the questions it did answer, the group largely confirmed or attempted to sidestep our findings," the US-based firm said.

Read- Adani Group hits back at Hindenburg, calls allegations attack on India

Earlier on Sunday, Adani Group had in a written response to the allegations said that it complies with all local laws and had made the necessary regulatory disclosures. It said that the report is an attempt not only to attack a specific company but also to tarnish India’s image. The Ahmedabad-based conglomerate said that that allegations are "attack on India".

“This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," the group said.

The 413-page report noted that the report claimed to have undertaken a two-year-long investigation and uncovered evidence but had “nothing other than selective and incomplete extracts of disclosed information which has been in the public domain for years”.

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