New Delhi - After a comprehensive examination, the US government rejected corporate fraud claims lodged by Hindenburg Research against billionaire Gautam Adani. Subsequently, the government granted financial assistance of up to $553 million for Adani's conglomerate-led container terminal project in Sri Lanka. Hindenburg's impactful report, which adversely affected Adani Group's market value, played a pivotal role in the due diligence conducted by the International Development Finance Corp. (DFC), as disclosed by a senior US agency official to Bloomberg.

The anonymous DFC official shared that they conducted an exhaustive assessment and determined that the accusations in Hindenburg's report, labeling Gautam Adani as orchestrating "the largest con in corporate history," did not apply to Adani Ports & Special Economic Zone Ltd., the leading entity in the Sri Lankan project. The DFC found the subsidiary to be in compliance with ethical standards.

Emphasizing ongoing scrutiny to prevent inadvertent support for financial misconduct, the official stressed the need for vigilance in ensuring ethical practices, highlighting a distinct approach compared to China in infrastructure projects.

Adani's involvement in the Sri Lankan port deal signifies a major US-backed infrastructure project in Asia, countering China's influence. The Adani Group denied Hindenburg's allegations, which included stock-price manipulation, with no evidence of wrongdoing found in Indian regulatory investigations. Adani stocks have recently shown positive trends, with a 7.4 percent gain in Adani Ports and Special Economic Zone Ltd. this year.

Presenting the DFC investment as a vote of confidence, the Adani Group sees it as affirmation of their vision, capabilities, and governance, according to Karan Adani, the tycoon's son and CEO at Adani Ports, during the deal announcement in Colombo.