US Investigated Hindenburg Claims Prior to Granting Loan to Adani Group

The Adani Group, led by billionaire Gautam Adani, has received a $553 million loan from the US government for a container terminal project in Sri Lanka, despite allegations of corporate fraud made by short-seller Hindenburg Research. The US government conducted a due diligence investigation and concluded that the allegations were not relevant to Adani Ports & Special Economic Zone Ltd., the subsidiary responsible for the Sri Lankan project.

Hindenburg Research’s scathing report, which caused a $100 billion drop in the Adani Group’s market value, was a focal point during the investigation by the International Development Finance Corp. (DFC), according to an unnamed official from the US agency. The DFC determined that the accusations in the report, which labeled Adani’s actions as “the largest con in corporate history,” did not pertain to the Sri Lankan project.

However, the DFC official emphasized that the agency will continue to monitor the Adani Group to ensure that the US government does not inadvertently support financial misconduct or any other inappropriate behavior. The official also highlighted the importance of approaching infrastructure projects differently from China.

The Sri Lankan port deal involving Adani is one of the largest and most notable US government-backed infrastructure projects in Asia. It reflects the US’s efforts to counter China’s growing influence in the region, particularly through President Xi Jinping’s Belt and Road Initiative.

The Adani Group has refuted the allegations made in the Hindenburg report, including accusations of stock-price manipulation. Regulatory inquiries and court hearings in India have not found any evidence of wrongdoing. Adani stocks have even rallied recently, with Adani Ports and Special Economic Zone Ltd. experiencing a 7.4% increase this year.

The DFC’s investment has been touted by the Adani Group as a vote of confidence following the Hindenburg allegations.

(Note: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)