The US government has determined that the allegations of corporate fraud made by short-seller Hindenburg Research against billionaire Gautam Adani were not relevant before approving a loan of up to $553 million for the Adani Group’s container terminal project in Sri Lanka.
According to a senior US official, the International Development Finance Corp. (DFC) extensively investigated the claims outlined in Hindenburg Research’s report, which previously led to a significant market value drop of around $100 billion for the Adani Group.
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The DFC, responsible for due diligence, concluded that the accusations, including labelling Adani’s actions as “the largest con in corporate history,” did not apply to Adani Ports & Special Economic Zone Ltd., the subsidiary leading the Sri Lankan venture.
The unnamed official emphasized ongoing monitoring to prevent unintentional support for financial misconduct, highlighting the importance of a distinct approach to infrastructure projects compared to China.
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