The central allegation of the Hindenburg Research report against the Indian Adani Group is that the listed shares of the group’s companies were manipulated through offshore entities controlled by Gautam Adani and his family. Cyprus-based entity New Leaina Investments Ltd is allegedly at the center of this stock manipulation scheme. Until June-September 2021, this investment company owned over U.S. $420 million in Adani Green Energy shares, accounting for 95% of its portfolio.
The Adani Group crisis has intensified. Hundreds of members of India’s opposition parties took to the streets to press for an investigation into the Hindenburg Research allegations against India’s second-biggest business group.
The website of New Leaina Investments describes its investment approach as “considerably broad.” In the Cyprus companies register, Andetta Group, headquartered in Curacao’s Caribbean tax haven, is listed as the company’s main shareholder. The company’s website lists P.O. Box 23293 as its address. This is also the address of the incorporation services firm Amicorp, which formed at least seven Adani promoter entities (known as insider holdings in the U.S.), and at least 17 offshore shells. New Leaina Investments seems to be managed by Amicorp.
Amicorp controls its own bank and investment vehicles, which can serve as a wall between markets and ultimate beneficial owners. The group has been involved in a $4.5 billion fraud scheme in Malaysia.
The three ultimate beneficial owners (UBO) of New Leaina Investments were disclosed in July 2021 by India’s Finance Ministry. All three seem to be Amicorp employees.
According to Bloomberg, in June 2021, approximately 95% of New Leaina’s holdings comprised a $420 million, 1.01% stake in Adani Green Energy. According disclosures from the Indian parliament, New Leaina Investments was (and might still be) a shareholder in Adani Total Gas, Adani Power, Adani Enterprises, and Adani Transmission. Hindenburg Research raised the question about the original source of funds for New Leaina Investments for its investments.
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