"Fraud cannot be obfuscated by Nationalism": Hindenburg slams Adani Group

The Adani Group had earlier slammed the Hindenburg Research paper who had put out a paper alleging 'suspected' fraud at the conglomerate.

New Delhi:Hours after the Adani group hit back at Hindenburg Research for its damaging allegations by calling it a “calculated attack” on India, the investment research firm said that its fraud can neither be 'obfuscated' by 'nationalism' nor a 'bloated' response that ignores every key allegation raised by the firm in its research paper.

"Fraud Cannot Be Obfuscated By Nationalism Or A Bloated Response That Ignores Every Key Allegation We Raised," Hindenburg Research wrote on Twitter with a link to its reply to Adani Group that was published on its website on Sunday. Hindenburg further said it believed India was a vibrant democracy and an emerging superpower with an exciting future and it was Adani Group that was holding it back through "systematic loot".

In its 413-page response to Hindenburg, Adani Group said that its report was driven by "an ulterior motive" to "create a false market" to allow the US firm to make financial gains. "This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," it said.

The Hindenburg Research document is "a malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive," Adani Group said in its reply. "This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors," it added.

It went on to question the credibility and ethics of Hindenburg and said the mala fide intention underlying the report was apparent given its timing when Adani Enterprises Limited is undertaking one of the largest ever further public offerings of equity shares in India.

Adanis's stocks came tumbling down soon after the report was released. Index provider MSCI on Saturday sought feedback on Adani group securities after the fallout.