Adani Group shares fell sharply on Thursday, 31 August 2023, after the Organised Crime and Corruption Reporting Project (OCCRP) alleged that the group used “opaque” investments through Mauritius to control its own companies.
The OCCRP report, which was based on leaked documents, alleged that Gautam Adani, the chairman of the Adani Group, and his family used a network of shell companies to invest in Adani Group companies through Mauritius.
The report also alleged that the Adani Group used these investments to avoid paying taxes in India.
The Adani Group has denied the allegations, calling them “false and defamatory”. The group said that it complies with all applicable laws and regulations in India and Mauritius.
The allegations have raised concerns about the transparency and accountability of the Adani Group. The group is one of the largest conglomerates in India, with interests in ports, airports, power, energy, and infrastructure. The group has been accused of using its political connections to gain access to government contracts and subsidies.
The allegations come at a time when the Adani Group is facing increased scrutiny from the Indian government. The government has recently blocked the group’s plans to acquire a major stake in a public sector power company. The government has also raised concerns about the group’s environmental record.
The fall in Adani Group shares is likely to have a negative impact on the Indian stock market. The group is one of the largest constituents of the Sensex and Nifty indices. The fall in the group’s shares could also lead to a sell-off in other stocks, as investors become more cautious about the Indian market.
The allegations against the Adani Group are serious and could have a significant impact on the group’s business. The group will need to take steps to address the allegations and restore investor confidence.