WASHINGTON (Diya TV) — The US government has dismissed allegations of corporate fraud against Indian billionaire Gautam Adani, made by short-seller Hindenburg Research. The dismissal paved the way for the extension of a substantial loan, totaling up to $553 million, for a container terminal project in Sri Lanka led by Adani Ports & Special Economic Zone Ltd.
The International Development Finance Corp. (DFC) conducted a thorough due diligence investigation in response to the Hindenburg report, which previously wiped out around $100 billion from the Adani Group’s market value. The DFC, satisfied that the accusations in the report were not applicable to the Sri Lankan project, confirmed its support for Adani Ports.
A senior US official, speaking on condition of anonymity, stated that the agency would continue monitoring the Indian firm to prevent unintentional support for financial misconduct. The official emphasized the importance of approaching infrastructure projects differently than China and ensuring adherence to ethical standards.
The Sri Lankan port deal, backed by the US government, stands as a notable infrastructure project in Asia, aligning with US efforts to counter growing Chinese influence in the region through initiatives like the Belt and Road Initiative.
The Adani Group, faced with allegations of stock-price manipulation and other financial improprieties in the Hindenburg report, has consistently denied any wrongdoing. Formal regulatory inquiries and court hearings in India have failed to substantiate the claims. Adani stocks have rebounded, and Adani Ports and Special Economic Zone Ltd. has seen a 7.4% gain so far this year.
The DFC’s investment in the Sri Lankan project, despite the controversy, has been touted by the Adani Group as a vote of confidence and a reaffirmation of its vision, capabilities, and governance. Karan Adani, CEO of Adani Ports and the tycoon’s son, expressed this sentiment when the deal was announced in Colombo.
