Wednesday, February 22, 2023

Sock puppets and shell entities.

In 2006, "I visited Gautam Adani's new Mundra port and was struck by its high automation and speed. I was astounded to hear that it financially compensated any ship that was not admitted and unloaded on schedule. While working in Mumbai in 1990, I had seen ships wait 20 days for port entry, So, Mundra seemed to be on another planet," admired Swaminathan SA Aiyar. By slowing his growth rate, the Hindenburg report will be a blessing in disguise. "One day I might actually buy Adani shares." In passing Aiyar acknowledges that any crimes must be punished, but is unstinting in his admiration for the business acumen of Adani. So, the end justifies the means, does it? After the Hindenburg report "lopped off $132 billion in market value from Gautam Adanis' empire," "it has brought in Kekst CNC as a global communications advisor, Bloomberg news reported." ET. "The Adani group has also engaged American law firm Wachtel, Lipton, Rosen & Katz to fight back against the short seller's claims, the Financial Times reported." "Wachtel is one of the most expensive law firms." However, Adani Enterprises "rubbished reports of hiring US-based accountancy firm Grant Thornton for independent audit of is firms after the Hindenburg fallout." DH. So Adani is prepared to spend huge money for lawyers to try and shut any whistleblower but not for an independent audit of his accounts. That, surely, fails the smell test. How does Adani silence his critics? "Independent Indian journalist Paranjoy Guha Thakurta is being sued by tycoon Gautam Adani's business empire in six different courts - and he is not allowed to speak about the conglomerate or its owner." ET. Legal costs and attending cases in different courts are clearly meant to harass and bully. "For more than a decade, sockpuppets - some of them being company employees - created 'puffery' around tycoon Gautam Adani, his family and the apples-to-airport group he helmed by adding non-neutral material and removing warnings from information on Wikipedia, the free internet-based encyclopedia alleged." ET. Wikipedia's independent newspaper "The Signpost alleged that over 40 sock puppets or undeclared paid editors created or revised 9 articles on the Adani family and their businesses," "listing IP addresses that edited information on Adani, his wife Priti, son Karan, nephew Pranav and group companies." BS. Gautam's brother, "Vinod Adani, through several close associates, manages a vast labyrinth of offshore shell entities," the report said identifying entities in Mauritius, Cyprus, the United Arab Emirates, Singapore, and several Caribbean Islands. These entities "regularly and surreptitiously transact with Adani," the report added. ET. We hope that Adani or his family have not broken any US laws. Any warrant issued in the US would be hard to avoid. The US does not allow anticipatory bail like India. He was wise, very wise, to engage expensive US lawyers.    

No comments: