Hindenburg saga: Hiring Grant Thornton for independent audit is a market rumour, says Adani Enterprises

Indian business tycoon Gautam Adani's conglomerate Adani Enterprises on Thursday issued a clarification to the exchanges on news reports of the company hiring Grant Thornton for conducting an independent audit following the Hindenburg fallout is a 'market rumour'.

"We would like to clarify that the said news item appears to be a market rumour and hence it would be inappropriate on our part to comment on it," the company said in a statement.

The exchanges had sought a clarification from the company after Business Standard reported that the embattled Adani group had appointed accountancy firm Grant Thornton for an independent audit of some of its companies in a bid to come clean of the damning allegations levelled by the US short-seller Hindenburg Research and to assure investors and regulators.

News agency PTI reported that the audit was primarily to show regulators like the Reserve Bank of India (RBI) that the group has nothing to hide and it is in compliance with relevant laws. Reportedly, the audit was to specifically look for any misappropriation or repatriation of funds and if loans were used for any purpose other than the one they were intended for.

The audit, they said, would go a long way to show that the books are healthy and project executions are on track - something that the investors are keenly watching given the damage to market value that the Hindenburg report has caused.

Indian Prime Minister Narendra Modi's party has "nothing to hide or be afraid of" on the controversy over Adani group, the home minister said on Tuesday, responding to opposition allegations of favouring the conglomerate attacked by a U.S. short seller.

Led by billionaire Gautam Adani, the business house's seven listed companies bearing his name have together lost about $120 billion in market value since a Jan. 24 report by Hindenburg Research alleged improper use of offshore tax havens and stock manipulation. The Adani group has denied the allegations and threatened legal action against Hindenburg.

"The Supreme Court has taken cognisance of the matter. As a minister, if the Supreme Court is seized of the matter it is not right for me to comment," Amit Shah, widely considered the most powerful politician in India after Modi, told the ANI news agency.

"But in this, there is nothing for the BJP to hide and nothing to be afraid of," Shah added, referring to the ruling Bharatiya Janata Party (BJP).

He denied allegations of crony capitalism and suggested the opposition to go to court if they had proof.