India’s Ministry of Corporate Affairs has launched an investigation into the financial accounts of airports owned by Adani Enterprises Ltd., located in Mumbai and its suburb, Navi Mumbai. This development was disclosed by the company in a filing, as reported by Bloomberg on Friday.
Adani Enterprises, the flagship entity within billionaire Gautam Adani’s conglomerate, successfully acquired Mumbai International Airport Ltd. and Navi Mumbai International Airport Ltd. during the financial year ending in March 2022. The ministry’s inquiry primarily focuses on the period spanning from 2017 to 2022, with a significant portion of the information sought falling within this time frame, according to Adani Enterprises.
In response to the communication received from the Ministry of Corporate Affairs, Adani Enterprises has expressed its intention to comply with the relevant legal provisions in its response. As of now, there has been no immediate comment from a representative of the Adani Group.
This latest investigation adds to the ongoing scrutiny faced by billionaire Gautam Adani and his corporate conglomerate, following allegations of corporate misconduct leveled by US shortseller Hindenburg Research several months ago. These allegations at one point led to a significant erosion in market value, exceeding $150 billion. The Adani Group, however, has consistently denied any wrongdoing.
Despite the initial market turbulence, Adani’s stocks and bonds have seen some recovery, particularly after securing investments from GQG Partners. In May, an interim report from a panel appointed by the Indian Supreme Court did not uncover evidence of stock price manipulation.
Gautam Adani had acquired a majority stake in Mumbai International Airport in August 2020 from the debt-stricken GVK Group. The Adani Group has outlined plans to commence operations at the Navi Mumbai airport in December 2024, further solidifying their presence in the Indian aviation sector.