US authorities are looking into Adani Group’s representations to its American investors following a scathing report by Hindenberg Research accusing the company of using offshore companies to manipulate its share prices secretly. Adani Group stocks lost up to 10% on Friday’s trade. 

According to a Bloomberg News story on Thursday, the US Attorney’s Office in Brooklyn, New York, has issued enquiries to investors with significant stakes in the Adani Group in recent months. The disclosure demands were centred on what Adani Group told those investors. The US Securities and Exchange Commission is conducting a similar investigation.

The Gautam Adani-led group is already facing regulatory probes in India. The interest from US authorities, sparked by the Hindenburg Research’s report, adds to the intense scrutiny of the Adani Group. 

The Hindenburg report accused the Adani Group of stock manipulation and accounting fraud. It added that the conglomerate misused offshore tax havens and flagged concerns about high debt. 

Requests for information from US prosecutors do not always imply filing criminal or civil procedures, as law enforcement authorities frequently initiate probes that do not result in action.

The Securities and Exchange Board of India (SEBI) “drew a blank” in inquiries into potential irregularities in international investments in the Adani group in May, and a Supreme Court-appointed panel warned that the case’s continuous pursuit could be a “journey without a destination.”

Adani Enterprises’ stock dropped 5.3% to Rs 2,271. Adani Ports, Adani Power, and Adani Transmission saw their shares fall 3-4%, while Adani Total Gas, Adani Green Energy, and Adani Wilmar fell 2-3%.