New Chapter in Hindenburg vs Adani Saga: US-based firm alleges Swiss authorities have frozen $310 million under money laundering & securities forgery probe into Indian conglomerate

In a new chapter of the Hindenburg vs. Adani saga, the US-based short-seller has alleged that Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani dating back to 2021.

Hindenburg Research took to microblogging site X (formerly Twitter) late on Thursday, citing newly released Swiss criminal court records reported by Swiss media outlet Gotham City, to state that prosecutors have detailed "how an Adani frontman invested in opaque BVI/Mauritius & Bermuda funds that almost exclusively owned Adani stocks". 

Swiss authorities have frozen more than $310 million in funds across multiple Swiss bank accounts as part of a money laundering and securities forgery investigation into Adani, dating back as early as 2021.

Prosecutors detailed how an Adani frontman invested in opaque…

— Hindenburg Research (@HindenburgRes) September 12, 2024

Gotham City is a French-language news website.

According to a ruling by the Federal Criminal Court (FCC), the Geneva Public Prosecutor's Office had been investigating alleged wrongdoing by the Indian conglomerate "well before investors from Hindenburg Research made their initial accusations," Gotham City reported.

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The report, dated September 11, states: "More than $310 million belonging to an alleged frontman for billionaire Gautam Adani is sequestered in five Swiss banks. The Office of the Attorney General of Switzerland (OAG) took over the investigation after the case was revealed in the press." Read more   

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Meanwhile, the Indian National Congress (INC)—the country's main opposition party—reiterated on Wednesday its demand for the formation of a Joint Parliamentary Committee (JPC) to investigate alleged corruption related to the Adani group.

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The INC's call for such a probe aims to uncover the full extent of corruption, monopolization, and gaps in India's regulatory system. This demand follows recent allegations against SEBI Chairperson Madhabi Puri Buch, which raised serious questions about her leadership of the country's market regulator. The INC has called for urgent clarification from Buch, the market regulator, and the Centre.

The SEBI matter relates to an August 10 report by Hindenburg accusing Buch and her husband, Dhaval Buch, of having previously held investments in offshore funds also used by the Adani group—charges categorically denied by the couple.

Many financial experts have expressed serious concerns about Buch's conduct during her tenure at SEBI.

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