Swiss Authorities Freeze $310 Million in Bank Accounts Allegedly Linked to Adani Group

Swiss Authorities Freeze Over $310 Million in Six Bank Accounts for Alleged Violations of Swiss Laws, as Madhabi Buch Faces Escalating Allegations of Abuse of Office and Conflict of Interest.

The Adani-Hindenburg Saga: Latest Revelations and Developments

The Adani-Hindenburg saga, a long-running controversy involving one of India's largest conglomerates and a prominent US-based short-seller, has once again entered the spotlight. With new revelations surfacing about frozen Swiss bank accounts, aggregating over $310 million, allegedly linked to the Adani Group, the situation has taken yet another significant turn. This brief article provides a summarized examination of the latest developments, allegations, and ongoing investigations in this complex saga, including the new revelations in respect of the SEBI Chirperson.

Latest Developments: Swiss Bank Accounts Frozen

In a major development, Swiss authorities have frozen over $310 million spread across six Swiss bank accounts. These accounts are reportedly tied to an alleged front man for the Indian billionaire Gautam Adani. This freeze is part of an ongoing investigation into allegations of financial misconduct involving the Adani Group. The Federal Criminal Court of Switzerland confirmed the action, revealing that the investigation started well before the now-infamous Hindenburg Research report.

Interestingly, this investigation by Swiss authorities dates back to 2021, underscoring that regulatory scrutiny of Adani’s business dealings was already in motion prior to the Hindenburg revelations. The Geneva Public Prosecutor's Office had initially been probing the case, which later came under the purview of the Office of the Attorney General of Switzerland (OAG), following its disclosure in the media.

Background to the Adani-Hindenburg Saga

The controversy escalated in January 2023 when Hindenburg Research accused the Adani Group of fraud and stock manipulation. According to the US-based short-seller, the conglomerate had been engaged in an elaborate scheme to manipulate its stock prices and inflate its financial position. These explosive allegations sent shockwaves through Indian markets, with the Adani Group’s market capitalization taking a steep dive. At its lowest point, the group lost a staggering $150 billion in value.

Despite the upheaval, the Adani Group has firmly denied all allegations, with Gautam Adani dismissing the Hindenburg report as a calculated effort to tarnish both his company’s reputation and India's image as a prime investment destination.

New Allegations: SEBI Under Scrutiny

Adding further complexity to the saga, fresh allegations surfaced in August 2024. This time, Hindenburg Research made new claims involving the Chairperson of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch, and her husband Dhaval Buch. The couple was accused of holding investments in an offshore fund allegedly linked to the Adani Group. This raised questions about potential conflicts of interest and further fuelled the already intense scrutiny of the Indian regulatory framework.

Ongoing Investigations: SEBI and Swiss Probes

Two key investigations continue to unravel the intricate financial web surrounding the Adani Group:

1. SEBI Investigation

SEBI, India’s market regulator, has been conducting an investigation—overseen by a Supreme Court-appointed committee—into the suspicious ownership structures of certain Mauritius-based entities believed to be linked to the Adani Group. These offshore entities are alleged to hold significant stakes in the conglomerate, sparking concerns about potential violations of Indian securities laws. However, despite the ongoing probe, no definitive action has been taken against Adani to date, as nothing concrete has emerged.

2. Swiss Investigation

Meanwhile, Swiss authorities have been conducting a parallel investigation since 2021. This probe is focused on the financial practices of the Adani Group, specifically involving opaque offshore entities. The freezing of the Swiss bank accounts represents a tangible step in this investigation, although the full implications are yet to unfold.

Allegations of Conflict of Interest Against SEBI Chairperson

Hindenburg Research had previously raised serious allegations of conflict of interest against SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch. The report claims that both had stakes in offshore Bermuda and Mauritius funds linked to the "Adani money siphoning scandal." These funds were allegedly used by entities tied to the Adani Group for trading in the company's shares, and Hindenburg suggested that this connection prevented a thorough investigation into the group.

Further claims include Madhabi Puri Buch owning a consulting firm, Agora Partners, from 2013 to 2022, which was transferred to her husband after she became SEBI chief. Meanwhile, Dhaval Buch's senior advisory role at Blackstone, a major investor in India, also raised concerns, as Madhabi Puri Buch promoted REITs as SEBI chief without disclosing this connection.

Allegations Against Buch Qua other Companies

Allegations have since surfaced involving several companies allegedly making payments to SEBI Chairperson Madhabi Puri Buch. Carol Info Services Limited, affiliated with Wockhardt Limited (under SEBI investigation for insider trading), is reported to have paid ₹2.16 crore in rental income between 2018 and 2024. ICICI Bank allegedly paid ₹16.80 crore in salary, ESOPs, and TDS between 2017 and 2024, though the bank describes them as post-retirement dues. ICICI Prudential is said to have paid ₹22.41 lakh over the same period, while Mahindra & Mahindra allegedly made payments to Buch's consulting entity. Other companies mentioned include Dr. Reddy's and Pidilite, though payment details are unclear. These claims, primarily from the Congress party and Hindenburg Research, have been denied by both Buch and the companies involved, though it has made her position as SEBI Chairperson increasingly untenable.

Madhabi Puri Buch and her husband have denied all allegations, calling them baseless. SEBI has defended her, stating that she made the necessary disclosures and recused herself from matters involving potential conflicts of interest.

Mahua Moitra Submits Complaint to Lokpal.

MP Mahua Moitra has raised serious allegations against SEBI Chairperson Madhabi Puri Buch, accusing her of engaging in quid pro quo arrangements and failing to disclose conflicts of interest related to the Adani Group. Moitra claims that Buch and her husband had investments linked to Vinod Adani and that Buch promoted real estate investment trusts (REITs) without revealing her husband’s ties to Blackstone Inc. Additionally, she is accused of holding an office of profit at ICICI Bank while serving at SEBI and fostering a toxic work environment. Ms Moitra has submitted these allegations to the Lokpal of India, seeking an inquiry into potential misconduct and conflicts of interest. We had elucidated this on our X handle.

Market Response: Signs of Recovery

While the Hindenburg report triggered a severe blow to the Adani Group’s market performance, there have been signs of recovery in recent months. By June 2024, shares of Adani’s listed companies had reportedly bounced back, recovering all of the losses incurred during the Hindenburg fallout. Furthermore, three of the ten listed Adani companies are now trading above their pre-Hindenburg report prices. This resilience highlights the group's ability to weather intense scrutiny and market shocks, at least in the short term.

Summing Up: A Saga Far from Over

Swiss Authorities

The recent freezing of Swiss bank accounts marks a significant development in the Adani-Hindenburg saga, adding substantial weight to the allegations of financial misconduct. The actions taken by Swiss authorities lend credence to the claims of wrongdoing, as they are reputable and cannot be easily dismissed as biased or prejudiced against India. These moves further highlight the global nature of the scrutiny facing the Adani Group.

Ms Buch’s Alleged Wide-ranging Demeanors

Moreover, the allegations against SEBI Chairperson Madhabi Puri Buch have now expanded far beyond her purported questionable dealings with the Adani Group, pulling her deeper into a web of conflict of interest concerns. The formal complaint lodged by the firebrand TMC Lok Sabha MP Mahua Moitra with the Lokpal of India is another serious layer in the unfolding narrative, and it cannot be brushed aside lightly. The evolving situation poses significant challenges not only for the Adani Group but also for Buch, whose position grows increasingly precarious.

While the Adani Group may likely weather the storm given its recovery in the stock market, regulatory scrutiny at home and abroad remains a looming threat. For Madhabi Puri Buch, however, the pressure of ongoing investigations and new allegations suggests that stepping down may be a wise course of action to preserve institutional integrity. The coming months will be crucial in determining the full extent of the alleged misconduct and its broader implications for India's financial landscape and international regulatory cooperation.