Adani-Hindenburg row: Former contractor witness to how money was shifted

Ajay Kumar Agarwal, a former Adani Group contractor, has filed an application in the Supreme Court (SC) stating that he has worked with the conglomerate and has witnessed money transfers from one subsidiary to the other, The Economic Times (ET) reported on Wednesday. Agarwal has sought permission from the apex court to intervene in the investigations by the Securities and Exchange Board of India (Sebi).

Agarwal, a director of EBPL Ventures, was the electrical contractor for Adani’s Sarguja Rail Corridor Project. He said he would like to help the court and Sebi protect investors’ larger interest.

Agarwal alleged that the conglomerate formed a new company, Sarguja Rail Corridor Pvt Ltd (SRCPL), to complete the work of the corridor. SRCPL later sub-contracted EBPL Ventures to complete the project.

In 2022, SRCPL was acquired by Adani Ports.

In his application, Agarwal said that he observed the work culture of the Adani Group closely.

Last week, a petitioner filed an affidavit in the apex court saying that the Sebi had allegedly hidden a 2014 alert by the Directorate of Revenue Intelligence (DRI) on possible diversion of funds and stock market manipulation by Adani Group companies.

Sebi is investigating several transactions by the group on directions of the SC. The investigation was started after a report, released in January, by US-based short seller Hindenburg Research alleged stock manipulation by the conglomerate.

On August 25, Sebi told the apex court that it had completed the investigation into the group.