Africa-Press – Mauritius. Mauritian Financial Services Minister Mahen Kumar Seeruttun has delivered a positive outcome for the Adani Group amidst the Hindenburg controversy by declaring to the country’s Parliament that the allegations made by Hindenburg Research regarding Adani’s utilisation of ‘shell’ companies in Mauritius are ‘false and baseless.
He also affirmed that Mauritius adheres to the tax regulations mandated by the OECD. On 24 January, the US short seller Hindenburg alleged that Indian tycoon Gautam Adani employed Mauritian-based shell companies to manipulate stock prices of his publicly listed Indian enterprises.
A shell company is an inactive company used as a means for various financial transactions or kept dormant for potential future use. When a Member of Parliament (MP) in Mauritius raised a written inquiry regarding Hindenburg’s claims of Adani Group using Mauritian entities for money laundering and share price manipulation, the minister responded by stating that the country’s laws prohibit shell companies.
“At the outset, I wish to inform the House that the allegations of the presence of shell companies in Mauritius are false and baseless,” he said.
“According to the law, shell companies are not allowed in Mauritius.
He further added that all global business companies licensed by the Financial Service Commission must meet ongoing substance requirements and are closely monitored by the Commission.
“To date, no breaches have been discovered,” he confirmed.
Seeruttun mentioned that while the Financial Services Commission has taken note of the Hindenburg report, it is unable to delve into specific details due to the confidentiality clause stipulated by the law.
The Securities and Exchange Board of India (SEBI) is currently examining the connection between the Adani Group and two Mauritian firms, namely Great International Tusker Fund and Ayushmat.
Both companies participated as anchor investors in the recently canceled share sale of the Adani Group’s flagship company. Due to the short seller’s allegations of fraud and stock price manipulation, the conglomerate experienced a temporary loss of USD 140 billion in market capitalisation. The Adani Group has refuted all the charges.
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