Introduction
Gautam Adani, the billionaire chairman of the Adani Group, is facing scrutiny after the Financial Services Commission (FSC) of Mauritius revoked the trading and investment licenses of a company linked to Adani investors. The company, Emerging India Fund Management Limited (EIFM), is now under investigation for alleged violations of the law.
Alleged violation of several provisions of the Act
The Enforcement Committee of the FSC has accused EIFM of violating multiple provisions of the law and has taken action to prevent money laundering and ensure corporate governance. The revocation of the license has effectively shut down EIFM’s operations, as the FSC spokesperson confirmed that the revocation is permanent.
Hindenburg Report
In January 2023, US short seller firm Hindenburg released a report accusing Gautam Adani of manipulating the share prices of his listed companies using shell companies registered in Mauritius. The Adani Group has strongly denied these allegations, and the Mauritius government has also dismissed the report as false.
EIFM has been found guilty of breaching Mauritius’ Financial Intelligence and Anti-Money Laundering Regulations from March to April 2018, involving Adani Power Limited, Adani Transmission Limited, and Adani Enterprises Limited. The share prices of these companies were allegedly manipulated by EIFM.
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