Mauritius Financial Services Minister Mahen Kumar Seeruttun has slammed allegations of shell companies in Mauritius as claimed by Hindenburg report as being “false and baseless”.
In its report, Hindenburg had alleged the presence of Adani Group’s shell companies in Mauritius, UAE, and the Caribbean islands.
Responding to questions from opposition MP Reza Uteem, Minister Seeruttun has told Parliament that he was informed by the Financial Services Commission of the report published by Hindenburg Research.
“Shell companies are not allowed in Mauritius, global companies have to meet the legal requirements set by the Mauritian government,” he told Parliament.
“According to law, Shell Companies are not allowed in Mauritius. Global business companies licensed by the Financial services providers have to meet substance requirements as per section 21 of the financial service activities.”
According to Mauritian law, the minister said a company from overseas needs to carry out its core income-generating activities in, or from, Mauritius, as required under the Income Tax Act. The second clause of the Act mandates the company to be managed and controlled by the country and be administered by a management company.
The next clause mandates a minimum of two native directors from Mauritius.
Hindenburg Research’s claimed brazen stock manipulation over the decades, stirring a political storm in India. The news led to a nearly $51 billion sell-off in shares of the port-to-energy Indian conglomerate.
It had added that the core allegations of its report “focused on numerous suspect transactions with offshore entities were left completely unaddressed.”
Result: Adani shares shoot up
After Mauritius Financial Services Minister Mahen Seeruttun refuted the allegations, Adani groups shares witnessed sharp upside movement during morning deals on Thursday, Live Mint reported.
“All 10 Adani group share price surged in the opening bell whereas Adani Enterprises share price gained maximum buy adding to the tune of 4 per cent within few minutes of market opening.
“Adani Green Energy, Adani Power, Adani Transmission and NDTV followed with near 2 per cent gains in early morning deals on Thursday. Adani Ports share price ascended over one per cent while Adani Wilmar share price gained around 1.50 per cent,” it reported.
Source: Live Mint
