Gautam Adani accused of pulling 'the largest con in corporate history' by ... trends now

Gautam Adani accused of pulling 'the largest con in corporate history' by ... trends now
Gautam Adani accused of pulling 'the largest con in corporate history' by ... trends now

Gautam Adani accused of pulling 'the largest con in corporate history' by ... trends now

The world's third-richest man has been accused of pulling of the 'largest con in corporate history' through the Indian-based Adani Group corporation. 

US investor Hindenburg Research, which has begun short selling the conglomerate through bonds, conducted a two-year probe into head Gautam Adani, who is worth $125 billion. 

The firm alleges that Adani and is family controlled a web of offshore shell accounts that it used to carry out corruption, money laundering and taxpayer theft, all while siphoning money from the companies they owned. 

'Adani has pulled off this gargantuan feat with the help of enablers in government and a cottage industry of international companies that facilitate these activities,' the firm wrote in its report published Tuesday. 

The Adani Group immediately denied the claims and expressed their shock at the allegations which cost the company $12 billion in market value and saw its flagship firm Adani Enterprises fall nearly 4 percent on Wednesday. 

Gautam Adani, the world's third-richest man, was accused of pulling of the 'largest con in corporate history' by famed US investor Hindenburg Research. Adani (left, pictured with wife Priti) is worth $125 billion through the Adani Group conglomerate

Gautam Adani, the world's third-richest man, was accused of pulling of the 'largest con in corporate history' by famed US investor Hindenburg Research. Adani (left, pictured with wife Priti) is worth $125 billion through the Adani Group conglomerate  

Hindenburg's two year investigation alleges Adani, his family and close associates shuffled money around to manipulate stocks and conceal debt. Adani is among the most powerful men in India and remains a close ally of Prime Minister Narendra Modi. The two are pictured in 2019

Hindenburg's two year investigation alleges Adani, his family and close associates shuffled money around to manipulate stocks and conceal debt. Adani is among the most powerful men in India and remains a close ally of Prime Minister Narendra Modi. The two are pictured in 2019

Gautam Adani: The world's third-richest man valued at $125B

Gautam Adani, 60, is the chair of the Adani Group, one of the three largest industrial conglomerates in India.

He began his journey as a diamond sorter in Mumbai in the late 1970s before going to work in his brother's plastics business in 1981. 

After securing a deal win Korea, he launched the group's flagship import-export business, Adani Enterprises. 

His business secret, as the Financial Times put it, was simple. 'Earn a small amount in one business, then take on heavy debts against its income to finance expansion into another,' the broadsheet said.

The group now has interests in ports, power generation and transmission, real estate, cement among a plethora of other industries. 

Adani controls India's largest port, Mundra Port, and became the country's biggest airport operator after purchasing a 74 percent stake in Mumbai International Airport in 2020.

Adani has been accused  by his critics of leveraging personal connections with Indian Prime Minister Narendra Modi to secure advantages.

At a net worth of $125billion, Adani only ranks behind French luxury goods mogul Bernard Arnault and Tesla CEO Elon Musk.  

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In its scathing report, Hindenburg questioned how the Adani Group used its offshore entities in tax havens like Mauritius, the Caribbean Islands, and the United Arab Emirates, adding that certain offshore funds and shell companies tied to the group 'surreptitiously' own stock in Adani-listed firms.

The short seller alleged that at least 28 of the shell entities were operated by Adani's older brother, Vinod, or his 'close associates,' as Hindenburg highlighted Indian officials' investigation into fraud allegations against the group. 

According to the officials in those investigations, Vinod would move money from offshore entities into private offshore trusts and companies owned by the family. That money would then

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