Hindenburg Research, the firm that previously criticized the Adani Group, has leveled new allegations against Madhabi Puri Buch, the Chairperson of the Securities and Exchange Board of India (SEBI). According to the firm, Buch and her husband were involved with “obscure offshore entities” connected to the Adani money siphoning scandal.
Hindenburg cites whistleblower documents indicating that Buch and her spouse held stakes in an offshore fund where Vinod Adani, Gautam Adani’s brother, invested a significant amount. Gautam Adani is the chairman of the Adani Group.
Buch did not respond to Reuters’ attempts to reach her via call and WhatsApp message.
Hindenburg’s earlier report in January 2023 accused the Adani Group of fraudulent activities, leading to a $150 billion drop in market value. This report prompted SEBI to launch an investigation into the group’s offshore investments and financial practices.
Recently, SEBI issued a show-cause notice to Hindenburg, accusing the firm of collaborating with a US hedge fund to profit from its report using non-public information.
Details from the report:
Hindenburg’s initial report, published 18 months ago, provided evidence of the Adani Group’s involvement in what was described as “the largest con in corporate history.” The report revealed a network of offshore shell companies, primarily in Mauritius, used for undisclosed transactions and stock manipulation.
Despite this evidence and over 40 independent media investigations supporting the initial report, SEBI has yet to take visible action against the Adani Group.
Hindenburg’s response to SEBI’s July 2024 show-cause notice questioned the regulator’s lack of interest in pursuing the parties behind the offshore shell empire involved in undisclosed transactions and stock manipulation.
The “IPE Plus Fund” is a small offshore fund based in Mauritius, created by an Adani director through India Infoline (IIFL), a wealth management firm linked to the Wirecard scandal. Vinod Adani reportedly used this fund to invest in Indian markets with funds allegedly siphoned from inflated power equipment invoicing to the Adani Group.
According to Hindenburg, Madhabi Buch and her husband Dhaval Buch were connected to the same offshore Bermuda and Mauritius funds used by Vinod Adani, with their accounts opening on June 5, 2015, in Singapore, as per the whistleblower documents.
(This story is developing.)
