Adani Group / Government alert on fall in Adani's shares, books and accounts are being investigated

Zoom News : Feb 04, 2023, 10:39 AM
Adani Group: After the report of Hindenburg Research, the problems of Adani Group are not taking the name of reducing. Where on one hand the group has been forced to withdraw the FPO of its flagship company Adani Enterprises after being fully subscribed. At the same time, the shares of the listed companies of the group are constantly falling. Now the Ministry of Corporate Affairs has also taken a big decision in this regard.

The Ministry of Corporate Affairs, Government of India, says that it has started an investigation into Adani Group's financial statements and other regulatory submissions. However, meanwhile, the Adani Group denied the allegations made in the Hindenburg Research report.

First major action from the government

Hindenburg Research released the report against Adani Group on 24 January. After this, the shares of some companies of the group have registered a decline of up to 50 percent. Meanwhile, from National Stock Exchange to other market regulators are involved in the investigation of this matter.

On the other hand, this kind of review by the ministry is the first initiative taken by the government regarding the scrutiny of Adani Group. Reuters has given this news on Friday quoting two senior officials.

Government sources said that under Section-206 of the Indian Companies Act, the ministry has started reviewing the Adani Group on Thursday. Under this provision, the ministry can examine the balance sheet, books of accounts and other financial documents of the company. Not only this, if the government needs any other document from the company, it can ask for that too.

Steps will be taken at the right time

Reuters quoted an official as saying that the Director General of Corporate Affairs has launched an investigation. The ministry is keeping a close watch on this whole situation. Will take appropriate steps according to the time.

There was no immediate comment from the Adani group in this regard. Nor has any statement been given by the office of the Director General.

Hindenburg Research drowned Adani

America's short-selling company Hindenburg Research has accused the Adani group of manipulation in its company's shares, doing business by exaggerating their value and committing accounting fraud. While the Adani group has termed the allegations of Hindenburg Research as baseless.