Chinese hand behind Hindenburg targeting Adani? Top lawyer makes explosive claim

Senior lawyer Mahesh Jethmalani has made a sensational claim about a potential Chinese connection behind Hindenburg Research's damaging report on the Adani Group, which led to a significant drop in the group's share prices. Jethmalani took to social media to claim that American businessman Mark Kingdon, linked with Kingdon Capital Management LLC, allegedly commissioned Hindenburg to compile the adverse report.

"Here’s a huge smoking gun in the sordid episode of the short sale of Adani shares by Hindenburg," he posted on X.

"For those who want to learn about accomplished #Chinese spy #AnlaCheng who along with her husband #MarkKingdon hired #Hindenburg for a research report on #Adani, engaged the services of Kotak to facilitate a trading account to short sell Adani shares," Jethmalani further said.

They "made millions of dollars from their short selling; who eroded Adani market cap enormously, with no thought for several Indian retail investors who they financially decimated through their nefarious design to promote Chinese strategic interests by destroying an Indian corporate competitor who had prevailed in many bids over the Chinese State in strategic international projects," the senior lawyer alleged.

Jethmalani accused them of leveraging Kotak Mahindra Investments Limited (KMIL) to establish trading accounts offshore for short-selling Adani shares, allegedly resulting in substantial financial gains while undermining the Adani Group's market capitalization.

Jethmalani further contended that Anla Cheng, identified as a prominent lobbyist for Chinese interests in the United States, previously helmed pro-China media initiatives, including #SupChina, which later faced scrutiny for its alleged pro-China stance. He suggested that Kingdon and Cheng's actions were possibly influenced by the Adani Group's perceived interference in Chinese strategic projects abroad.

The lawyer posed several questions, including inquiries into the introductions between Kingdon and KMIL, the extent of due diligence conducted by KMIL, and whether KMIL itself participated directly in the short-selling activities. Additionally, Jethmalani questioned the awareness among Indian entities, including politicians, who may have collaborated with Hindenburg and benefited from the reported short-selling scheme, and whether they were aware of any alleged Chinese affiliations.

The allegations have intensified scrutiny on the interactions between international investors, Indian financial institutions, and the regulatory oversight exercised by authorities like the Securities and Exchange Board of India (SEBI). Hindenburg Research has been issued a show-cause notice by SEBI alongside Kingdon entities for potential trading violations related to Adani Enterprises Ltd.

IANS