Adani denies rise due to Modi as shares fall again

• India’s Finance Minister says markets ‘well regulated’ after Adani storm

MUMBAI, AFP: Beleaguered Indian tycoon Gautam Adani denied Friday that his rise to become Asia’s richest man – a title he has lost in a phenomenal stock rout – was due to Prime Minister Narendra Modi, as shares in his conglomerate fell again. His listed units’ combined market capitalisation has collapsed by around $ 120 billion – about half of the group’s value – since US short-seller Hindenburg Research, which makes money by betting on shares falling, released an explosive report last week.

It accused Adani of accounting fraud and artificially boosting its share prices, calling it a “brazen stock manipulation and accounting fraud scheme” and “the largest con in corporate history”.

Critics say Adani’s close relationship with Modi, who is also from Gujarat state, has helped him win business and avoid proper oversight.

“These allegations are baseless,” Adani told India Today television on Friday, adding that their shared origins made him an “easy target” for such claims.

“The fact of the matter is that my professional success is not because of any individual leader,” he insisted.

His comments came as shares in his flagship firm Adani Enterprises went on a rollercoaster ride on the Bombay Stock Exchange, hitting multiple trading stops as they fell by 30% before recovering to close up 1.25% on the day.

Parliament was adjourned for a second straight day on Friday after opposition lawmakers again demanded the Government grant a debate on Adani and Indian financial institutions’ exposure to the group.

Finance Minister Nirmala Sitharaman said Indian markets were well regulated and the controversy would not affect investor confidence.

“One instance, however much talked about globally, I would think is not going to be indicative of how well Indian financial markets have been governed,” she told broadcaster News18.

Adani has seen his fortune plummet by tens of billions of dollars, dumping him from third to 17th on the real-time Forbes rich list.

The 60-year-old publicity-shy school dropout’s operations expanded at breakneck speed, with Adani Enterprises shares soaring more than 1,000% over the past five years.