India's Ministry of Corporate Affairs has initiated an investigation into the financial accounts of airports owned by Adani Enterprises Ltd. located in Mumbai and its suburb, Navi Mumbai, as disclosed by the company in a filing on Friday, Bloomberg reported on Friday.
Inquiry focused on period between 2017 to 2022
Adani Enterprises, the flagship entity within billionaire Gautam Adani's conglomerate, successfully acquired Mumbai International Airport Ltd. and Navi Mumbai International Airport Ltd. during the financial year ending in March 2022. The ministry's inquiry is primarily focused on the period between 2017 and 2022, with a substantial portion of the information requested falling within this timeframe, according to the Gujarat-based company.
Adani Enterprises has conveyed its intent to respond to the communication received from the Ministry of Corporate Affairs in compliance with the relevant legal provisions. As of now, there has been no immediate comment from a representative of the Adani Group.
Adani under scrutiny after Hindenburg report
This recent investigation underscores the ongoing scrutiny faced by billionaire Gautam Adani and his corporate conglomerate, even months after US shortseller Hindenburg Research leveled allegations of wide-ranging corporate misconduct against the conglomerate. These accusations at one point led to a significant erosion in market value, surpassing $150 billion. The Adani Group has consistently denied any wrongdoing.
Adani's stocks and bonds have seen some recovery following the short-seller report, particularly after securing investments from GQG Partners. In May, an interim report from a panel appointed by the Indian Supreme Court did not uncover evidence of stock price manipulation.
Adani had acquired a majority stake in Mumbai International Airport in August 2020 from the debt-stricken GVK Group. Adani has indicated plans to initiate operations at the Navi Mumbai airport in December 2024.
