Mauritian Minister Dismisses Hindenburg’s Allegations Against Adani Group as False and Baseless

New Delhi : The Adani Group has received a boost in its ongoing battle against allegations of fraud and stock price manipulation. Mauritius Financial Services Minister Mahen Kumar Seeruttun recently addressed Parliament to declare that Hindenburg Research’s accusations of “shell” companies in Mauritius connected to Adani were “false and baseless”, according to PTI.

The minister confirmed that Mauritius is fully compliant with OECD-mandated tax rules and that global business companies licensed by the Financial Services Commission are subject to ongoing substance requirements and strict monitoring.

The allegations made by Hindenburg Research on January 24th were serious, claiming that Gautam Adani had used shell companies in Mauritius to manipulate the stock prices of Indian-listed Adani Group companies. The minister’s statement indicated that the law in Mauritius does not allow shell companies, and all companies must meet substance requirements on an ongoing basis. The Financial Services Commission has been closely monitoring the Adani issue and has requested and received compliance reports on all relevant companies, which show compliance with prevailing legislation in Mauritius.

The Financial Services Commission is also collaborating with law enforcement agencies both in Mauritius and overseas regulators on the matter. The minister confirmed that Mauritius is in compliance with international best practices and has been rated as compliant with OECD standards. He also stated that since 2018, Mauritius has reformed its global business framework and tax regime, with the aim of removing harmful tax practices.

The Hindenburg-Adani issue is due to come up in the Supreme Court, with the apex court likely to take up capital market regulator SEBI’s plea for a six-month extension in timelines to probe allegations against the Adani Group. The Securities and Exchange Board of India (SEBI) is assessing the connection between Adani Group and two Mauritian firms – Great International Tusker Fund and Ayushmat Ltd – that participated as anchor investors in the recently cancelled share sale of Adani Group’s flagship company.

It is essential to ensure that all allegations are thoroughly investigated, and that facts are checked before making accusations. The Mauritian minister’s statement highlights the importance of compliance with global best practices and adhering to relevant legislations, which should serve as a reminder to all companies of the need to follow established protocols. The ongoing collaboration between the Financial Services Commission and law enforcement agencies is an excellent example of how various stakeholders can work together to investigate claims thoroughly and ensure that justice is served.