A fresh investigation by the Organised Crime and Corruption Reporting Project (OCCRP) has alleged that offshore entities linked to associates of the Adani family secretly invested hundreds of millions of dollars in shares of the Adani group, raising questions over disclosure norms and potential violations of India’s public shareholding rules.
OCCRP and its reporting partners, the Financial Times and The Guardian, had revealed the names of two men who had spent years secretly trading Adani stock: Nasser Ali Shaban Ahli, a citizen of the United Arab Emirates (UAE), and Chang Chung-Ling, a Taiwanese citizen. "Both men’s ties to the Adani family have been widely reported over the years, and both held positions in affiliated companies."
"But now, internal documents from REYL Intesa Sanpaolo, a Swiss banking group headquartered in Geneva, reveal that Mr Ahli and Mr Chang’s investments in the Adani group were much larger and more recent than was publicly known. While previous reporting revealed investments in the hundreds of millions between 2013 and 2018, the documents show they held about US$3bn (billion) in Adani stock through several hedge funds as recently as 2023 through accounts with Reyl Finance (MEA) Ltd, a Dubai-based subsidiary of REYL Intesa Sanpaolo," OCCRP says.
Alleged Offshore Investment Structure
OCCRP’s investigation centres on Mauritius-based funds that invested substantial sums in Adani group listed companies over several years. The report claims that these entities channelled funds into Adani shares at a time when concerns were already being raised about concentrated shareholding patterns.
According to OCCRP, bank documents indicate that one of the key investors was a long-time business associate of the Adani family and that funds routed through offshore structures were used to acquire significant stakes in Adani companies. The investigation alleges that these investments were not entirely independent of the promoter group, despite being classified as foreign portfolio investments (FPIs).
The report states that the documents suggest coordination between offshore entities and individuals linked to the Adani family. OCCRP further claims that internal banking compliance records flagged the politically exposed status of certain individuals involved, prompting enhanced due diligence by financial institutions.
Shareholding and Regulatory Concerns
Under Indian securities regulations enforced by the Securities and Exchange Board of India (SEBI), listed companies must maintain a minimum public shareholding of 25%. Any undisclosed promoter-linked holdings parked under the guise of public shareholding could potentially undermine this requirement.
OCCRP’s report suggests that if the offshore investments are effectively controlled or influenced by promoter-linked entities, this could have had implications for compliance with minimum public float norms.
The investigation notes that large, concentrated investments in relatively illiquid Adani stocks may also have played a role in supporting share prices during periods of volatility. However, the report stops short of alleging direct price manipulation, instead highlighting the opacity of the ownership structures.
Banking Records and Compliance Flags
According to OCCRP, the documents reviewed include transaction records, internal compliance communications and account opening forms from international banks. The report claims that compliance officers at one bank identified links between offshore entities and individuals associated with the Adani family, triggering internal scrutiny.
OCCRP states that, despite these red flags, the investment structures remained operational for years and continued to hold substantial positions in Adani group companies.
The investigation further alleges that funds flowed through layered corporate entities spanning multiple jurisdictions, including Mauritius and the Caribbean, making it difficult to trace ultimate beneficial ownership.
Response and Broader Context
The Adani group has previously denied allegations of wrongdoing in relation to offshore investors and shareholding patterns. In earlier public statements responding to separate allegations, the conglomerate has maintained that all transactions comply with applicable laws and that its listed companies meet minimum public shareholding requirements.
The latest OCCRP report comes against the backdrop of heightened scrutiny of the Adani group following earlier reports by short-seller Hindenburg Research in 2023, which had alleged stock manipulation and accounting irregularities. The Adani group had strongly rejected those claims as 'baseless'.
OCCRP’s findings are based on its own document review and reporting. The organisation says its investigation involved journalists across multiple countries and relied on leaked banking records and corporate filings.
Regulatory Implications
The allegations outlined in the OCCRP report could renew calls for a deeper regulatory probe into the ownership structure of FPI holding stakes in major Indian conglomerates.
SEBI has previously conducted investigations into certain foreign investors holding Adani stocks. The regulator has stated in past disclosures that it has examined ownership structures and beneficial ownership disclosures in accordance with the law.
The Adani group has not publicly responded to the specific findings detailed in the OCCRP report at the time of publication.
