Two FPIs linked to Adani Group acted as fronts for promoters, says OCCRP
OCCRP, a global collective of investigative journalists backed by billionaire George Soros and others, on Thursday said it has uncovered a trail of financial transactions to show that Adani Group promoters indulged in share price manipulation of at least four group company stocks via undisclosed related entities.
In its report, the Organized Crime and Corruption Reporting Project (OCCRP) alleged that two overseas funds, or foreign portfolio investors (FPIs), that invested extensively in Adani stocks during 2013-18 acted as «fronts» for the group's promoters.
Recycled Allegations: Adani
OCCRP also said they were managed by individuals who are former associates of Adani Group.
«Nasser Ali Shaban Ahli from Taiwan and Chang Chung-Ling from the United Arab Emirates, both with longstanding business ties to the Adani family, who have also served as directors and shareholders in Adani Group companies and related Vinod Adani-associated firms, used the funds to trade large amounts of shares in four Adani companies between 2013 and 2018,» the collective's report said.
«In March 2017, the value of these investments in Adani Group stock was $430 million.
Additionally, in June 2016, these two investors, known as Emerging India Focus Fund and EM Resurgent Fund, held free-floating shares of four group companies — Adani Power, Adani Enterprises, Adani Ports & SEZ and Adani Transmission — ranging from 8% to nearly 14%,» the report said.
OCCRP said the four companies used in the investments were Chang-owned Lingo Investment Ltd, Ahli-owned Gulf Arij Trading FZE, Mid East Ocean Trade (Mauritius), of which Ahli was the beneficial owner, and Gulf Asia Trade & Investment Ltd, of which Ahli was the «controlling person.»
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