Swiss authorities have frozen $311 million (approximately ₹2,610 crore) held by a Taiwanese resident in several Swiss bank accounts as part of a money laundering investigation. The individual in question is suspected to be acting as a frontman for the Adani Group, a major Indian conglomerate. However, the Adani Group has strongly denied these allegations, stating that they are not involved in any legal proceedings in Switzerland and that none of their accounts have been frozen.
The Background: Hindenburg Report and Market Impact
Last year, the U.S.-based short-seller firm, Hindenburg Research, published a highly critical report on the Adani Group. This report alleged financial misconduct, including stock market manipulation and accounting fraud. As a result, the group’s listed companies saw their market value plummet by around $150 billion in the weeks that followed.
Recently, Hindenburg Research revisited these accusations. In a post on the platform ‘X’ (formerly Twitter), they cited newly released Swiss criminal records reported by a Swiss media outlet. The records suggest that Swiss authorities have frozen over $310 million in multiple bank accounts as part of a money laundering and securities forgery investigation linked to the Adani Group. According to Hindenburg, Swiss prosecutors suspect that a frontman for Adani had invested large sums of money in offshore funds, specifically located in the British Virgin Islands (BVI), Mauritius, and Bermuda, which held mostly Adani stocks.
Adani Group’s Response
The Adani Group has firmly rejected these allegations, calling them baseless. In a public statement, the company clarified that it is not involved in any court proceedings in Switzerland and that none of its bank accounts have been subject to freezing or sequestration.
“We unequivocally reject and deny the baseless allegations presented. The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority,” the company stated.
Swiss Court Findings
According to the Swiss media outlet Gotham City, the Geneva Public Prosecutor’s Office has been investigating a case related to over $310 million being held in Swiss banks by an individual suspected to be a frontman for Gautam Adani, the billionaire owner of the Adani Group. The court documents suggest that the money has been sequestered (frozen) over the past three years as part of the ongoing investigation.
The Swiss investigators believe that the Taiwanese individual, Chang Chung-Ling, is not the true owner of the funds, but merely a figurehead acting on behalf of the Adani Group. The Adani Group, however, strongly denies any connection to this individual or the court order.
The group emphasized that their overseas holding structures are transparent and comply fully with all laws and regulations. “Even in the alleged order, the Swiss court has neither mentioned our group companies, nor have we received any requests for clarification or information from any such authority or regulatory body. We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws,” they said.
Allegations and Denial of Wrongdoing
The allegations brought against the Adani Group are serious. Hindenburg’s report had first mentioned Chang Chung-Ling in 2023, accusing him of being involved in stock market manipulation and money laundering through offshore funds. It was also alleged that he was the sole director of a shell company, Growmore, based in Mauritius, which was allegedly used to move funds illegally. Hindenburg had claimed that Growmore made a massive $423 million profit overnight through a merger with Adani Power.
In response, the Adani Group has consistently denied all accusations. The conglomerate insists that the allegations are part of a coordinated attack designed to damage its reputation and market value. “The allegations are clearly preposterous, irrational, and absurd. We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value,” the company said in its defense.
Conclusion
The ongoing investigation by Swiss authorities, as well as the repeated allegations from Hindenburg Research, continue to cast a shadow over the Adani Group. However, the conglomerate remains adamant in its denial, maintaining that it has always operated in compliance with legal and regulatory requirements.
As the investigation continues, it remains to be seen how these developments will affect the Adani Group’s reputation and business operations on the global stage.
