Adani: Adani Group appointed Grant Thornton to audit its companies, said this on Hindenburg.

Adani Group has appointed accountancy firm Grant Thornton to independently audit some of its companies to fend off allegations made by US short seller Hindenburg Research and reassure investors and regulators.

Sources said the audit is primarily to show regulators such as the Reserve Bank of India (RBI) that the group is not hiding anything and is complying with relevant laws. The audit will specifically examine whether there was any misappropriation of funds or diversion of loans. He said that the audit would go a long way in showing that the books of accounts were properly maintained and the projects were executed properly.

Amid continued volatility in its shares, the Adani Group on Monday sought to reassure the market, saying that its expansion plans remain intact. The business plans are fully funded and the group is confident of delivering returns to the shareholders.

A January 24 report by US-based short seller Hindenburg Research alleged that Adani has achieved the “biggest fraud in corporate history” by using offshore tax havens and stock manipulation.

The group denied all the allegations, calling them ‘malicious’, ‘baseless’ and a ‘planned attack on India’. It called Hindenburg the “Madoff of Manhattan”, and linked him to the late financier and fraudster Bernie Madoff.

“Each of our companies has very healthy balance sheets,” said a group spokesperson. “We have industry leading growth capabilities, strong corporate governance, secure assets, strong cash flows. Our business plan is fully funded. The group also dismissed reports of reduction in growth targets and capital expenditure. Towards the group projects may be delayed, but none have been postponed.Plans for solar, green hydrogen and airport expansion are on track.