Months after Hindenburg flagged Adani's shell firms in Mauritius, minister denies claims

Mauritius is a tiny island nation with a population of 13 lakh and an estimated GDP of $29 billion, but together with Singapore, it accounted for 49 per cent of FDI flowing into India between 2000 and 2022. In 2020, JP Morgan had revealed that JP Morgan's employees used shell firms in Mauritius and Singapore to launder money for the Amrapali real estate group.

But with Hindenburg's allegations against Adani putting the spotlight on Mauritius, its financial services minister has denied the existence of shell companies in the country.

Cites regulations to deny allegations

Speaking in the parliament, the minister added that the establishment of such entities isn't allowed in Mauritius, and global firms operating there are required to comply with norms set by the governmemt.

Without naming Hindenburg or Adani, the minister went on to say that claims about shell companies in the Island nation are false and baseless.

He also mentioned that as per the Income Tax Act, firms are required to run their core income-generating operations from or in Mauritius.

What does the Hindenburg report say?

The Hindenburg report had alleged that a network of offshore firms, including those in Mauritius and controlled by Vinod Adani, was used to rout funds for inflating Adani Group stocks.

Mauritius had emerged as a tax haven after a treaty between India and the country signed in the 1980s, after which it dropped double taxation and taxes on capital gains.