What is OCCRP and what its report says on alleged secret trading in Adani Group

New Delhi: The Adani Group found itself embroiled in yet another controversy on Thursday, as a report by Organised Crime and Corruption Reporting Project (OCCRP) flagged fresh concerns about alleged illegal business practices in the ports to energy conglomerate.

The OCCRP report claimed that Mauritius-based ‘opaque’ funds were used to invest millions of dollars in public traded group stocks of the Indian conglomerate and it happened under the ‘guidance’ of partners linked to promoter’s family. The explosive charge was quickly & strongly refuted by the Adani Group, which termed it as ‘recycled allegations.’

The fresh accusation of illegal business practices, comes on back of US short-seller Hindenburg Research’s claims in January 2023, which sent the Group stocks into a tailspin and wiped off mammoth $150 billion in value. The Hindenburg made sensational charges against Gautam Adani-led conglomerate, accusing it of stock price manipulation, accounting fraud and improper use of tax havens.

The OCCRP report claims that it unearthed at least 2 cases where ‘mysterious’ investors bought & sold Adani shares via offshore structures.

In its report, it named two persons with long-terms ties with Adani family and how they ‘colluded’ in buying & selling Adani stocks through offshore structures and in turn raked in huge profits from dubious dealings.

It said that Nasser Ali Shaban Ahli and Chang Chung-Ling enjoyed business ties with Adani family and also served as directors and shareholders in Group companies and firms linked with Gautam Adani’s elder brother Vinod Adani.

What is OCCRP?

OCCRP is a pan-world network of investigative journalists, aimed at flagging corruption & graft. It is funded by organizations including George Soros’ Open Society Foundation (OSF) and Rockefeller Brothers Fund.

How Adani Group refuted report

Adani Group was quick to dismiss the allegations as ‘recycled & motivated’. It said that it was yet another concerted bid by Soros-funded interests and aided by a section of the foreign media to revive the “meritless” Hindenburg report.

The conglomerate said that the timing of report was suspicious, mischievous, and malicious.
“In fact, this was anticipated, as was reported by the media last week,” Adani Group said.

What Adani Group said about SEBI probe

While issuing rebuttal to OCCRP, the group also informed that Foreign Portfolio Investors (FPIs) mentioned in the report was already being investigated by Securities and Exchange Board of India (SEBI).

“These FPIs are already part of the investigation by the Securities and Exchange Board of India (Sebi). As per the Expert Committee appointed by Supreme Court, there is no evidence of any breach of the Minimum Public Shareholding (MPS) requirements or manipulation of stock prices,” Adani Group said.