India’s Adani Group is responding to allegations of “brazen stock manipulation”. 

Mining magnate Gautam Adani - one of the richest people in the world - has taken a big hit to his net worth after investors rushed to sell shares in response to the report. 

They were spooked by a report from Hindenburg Research alleging the Adani Group had “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.

Mr Adani's elder brother, Vinod, “manages a vast labyrinth of offshore shell entities” in tax havens including Mauritius, Cyprus and several Caribbean islands, the analysts say. 

Hindenburg says it found several clear instances of undisclosed related-party transactions and earnings manipulation “to maintain the appearance of financial health and solvency” of listed Adani companies.

The report also said Adani has enjoyed a pattern of “government leniency towards the group” stretching back decades.

“We believe the Adani Group has been able to operate a large, flagrant fraud in broad daylight in large part because investors, journalists, citizens and even politicians have been afraid to speak out for fear of reprisal,” the report says.

Adani Group has issued an extensive response saying it complies with all local laws and has made necessary regulatory disclosures.

“All transactions entered into by us with entities who qualify as 'related parties' under Indian laws and accounting standards have been duly disclosed by us,” Adani said in the 413-page response issued late on Sunday.

“This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors,” it added.

The allegations were “not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India”, it said.