Adani Group’s has hired Grant Thornton to conduct some independent audits.After Hindenburg disaster

The appointment is Adani Group’s first major effort to defend itself following Hindenburg’s Jan. 24 report accusing it of improper use of offshore tax havens and stock manipulation

According to two people familiar with the matter, India’s Adani Group has hired accountancy firm Grant Thornton to conduct independent audits of some of its companies in an effort to discredit claims by short-seller Hindenburg Research that have battered its stocks and bonds.The appointment is Adani Group’s first major effort to defend itself following Hindenburg’s Jan. 24 report accusing it of improper use of offshore tax havens and stock manipulation.

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The conglomerate, led by billionaire Gautam Adani, has categorically denied the allegations, but investors are worried. In the last three weeks, the market value of the group’s seven listed subsidiaries has dropped by about $120 billion.Following the Hindenburg report, Adani Group announced last week that it was considering an independent evaluation of legal compliance, related party transactions, and internal controls. For the first time, Grant Thornton’s appointment is reported here.

According to sources who declined to be identified because the appointment is confidential, Grant Thornton has been hired to conduct independent audits of some Adani Group companies.According to one of the sources, Grant Thornton will investigate whether related-party transactions at the Adani Group met corporate governance standards.

Grant Thornton and Adani Group did not respond immediately to requests for comment.On Monday, Adani Group sought to reassure investors by stating that it had strong cashflows, that its business plans were fully funded, and that it was “confident in our portfolio’s continued ability to deliver superior returns to shareholders.”

However, regulatory pressure is increasing. On Monday, India’s market regulator confirmed that it was looking into the Hindenburg report, as well as market activity before and after it was published.

According to the US short-report, seller’s it discovered numerous “undisclosed related party transactions” by both listed and private Adani companies, alleging violations of Indian disclosure laws.Adani stated in its rebuttal that “all related party transactions are at arm’s length, properly disclosed, and reviewed/audited by statutory independent auditors.”