Swiss authorities have frozen more than $310 million (Sh39.98 billion) across multiple bank accounts allegedly linked to Adani, the Indian conglomerate bidding to take over operations of Jomo Kenyatta International Airport (JKIA), as fraud claims against the company resurface.
Adani Airport Holdings’ privately initiated proposal to run Kenya’s largest airport—and develop luxury resorts adjacent to JKIA—has come under intense scrutiny since details were made public earlier this year.
The deal is being challenged in court and Kenya Airports Authority (KAA) workers have been on strike over the proposed takeover.
Airports are just one of many businesses under the Adani umbrella, a sprawling conglomerate run by Gautam Adani, one of Asia’s richest men, which has been the subject of high-profile fraud allegations since early last year.
Hindenburg Research—a short seller, or trading firm that bets against a company’s shares—claimed in January 2023 that the Adani Group had engaged in long-running stock manipulation and accounting fraud that made it “the largest con in corporate history.”
New documents published this week reveal that fraud allegations made against Adani appear to have been on the radar of regulators in Switzerland for years prior to Hindenburg’s report.
A Federal Criminal Court decision, published by Swiss investigative outlet Gotham City, shows that allegations of money laundering and other criminal activity allegedly linked to Adani have been under investigation in Switzerland since at least December 2021.
The court’s decision upheld an order to freeze more than $310 million held across five Swiss bank accounts.
The judgment, published in French, details how prosecutors believe the holder of the accounts in question is not the beneficial owner but rather a front man for another group.
That group, in turn, is suspected by prosecutors to have engaged in illicit activities, including embezzlement and the use of shell companies to breach Indian securities laws.
The Swiss criminal courts do not explicitly name the participants.
However, the judgment describes the same allegations made against Adani by Hindenburg and makes explicit reference to Swiss prosecutors following accusations made in a January 2023 report by a New York firm.
Hindenburg acknowledged the Swiss investigation in a post on social media site X on Thursday.
Adani has consistently and vehemently denied Hindenburg’s claims, and in a statement on Thursday rejected that it was involved in the Swiss court proceedings.
“The Adani Group has no involvement in any Swiss court proceedings, nor have any of our company accounts been subject to sequestration by any authority,” the group said in a statement.
“We reiterate that our overseas holding structure is transparent, fully disclosed, and compliant with all relevant laws. These allegations are clearly preposterous, irrational, and absurd.
“We have no hesitation in stating that this is yet another orchestrated and egregious attempt by the same cohorts acting in unison to inflict irreversible damage on our group’s reputation and market value.”