US finds Hindenburg report irrelevant for granting funds to Adani Ports: Report

Adani-Hindenburg row: The US government has called the Hindenburg report on Adani group, 'not relevant' for its decision to grant up to $553 million for a Sri Lankan terminal which is being developed by Adani Ports & Special Economic Zone Ltd.

Hindenburg allegation examined

As per a Bloomberg report, the International Development Finance Corp., or DFC conducted due diligence investigation of the conglomerate in which the Hindenburg report's allegations was also taken into consideration. The DFC was reportedly satisfied that the accusations in the short-seller’s report, which said Adani was pulling off “the largest con in corporate history,” weren’t applicable to Adani Ports & Special Economic Zone Ltd., the subsidiary spearheading the Sri Lankan project.

Also Read: US to invest $553 million in Adani's Sri Lankan port terminal project to curtail China's influence

However, the US official also told Bloomberg News that US will continue to monitor the Adani group company to ensure the US government doesn’t unintentionally support financial misconduct or other inappropriate behaviour.

US investment in Adani Port

The United States signed an agreement to provide $553 million for a port terminal in Sri Lanka that is being developed by Adani group, as both Indian and US are looking to curb the influence of China in South Asia.

The investment comes from US government's largest infrastructure investment in Asia -International Development Finance Corp. The DFC in a statement had said it will bolster Sri Lanka's economic growth and “its regional economic integration, including with India, a key partner to both countries”.