Adani-linked Mauritian firms didn't breach local laws; can it help the conglomerate?

The volly off allegations and denials between Hindenburg Research and the Adani Group, has already led to an investigation by India’s market regulator, the Securities and Exchange Board of India. Probes against an Adani-linked firm Elara Capital in the UK and the conglomerate in Australia are also underway, as Adani’s firefighting hasn’t prevented investors from moving away. Following Hindenburg’s allegations that funds and firms based in Mauritius were used by Adani to buy its stocks and inflate prices, the Mauritian regulator has said that the companies haven’t violated their laws.

The country known as a tax haven, like the Cayman Islands and Bahamas, is home to 38 companies and 11 funds, linked to the Adani Group. The countries Financial Services Commission hasn’t found any irregularities in these firms, but is yet to share its primary report with Indian authorities. This statement may provide some respite for Adani, which is already struggling with its stocks being downgraded by Moody’s and the cancellation of its FPO.

Back in 2021, a report by the Economic Times had also highlighted how four firms with a history of investing in firms that were later probed for wrongdoings, had invested 90 per cent of their $6.7 billion under management in Adani stocks. Apart from Albula, Creta and APMS funds, a fund linked to Elara Capital, now under scrutiny in the UK, was also mentioned as a major share holder for the Adani Group.