After Flagging Concerns, Deloitte, Auditor Of Adani Ports, To Quit
India-West News Desk
NEW YORK, NY – Global financial ripples continue as Deloitte contemplates severing ties with Adani Ports, a subsidiary of the Adani Group, following the turmoil ignited by the report by US short-seller Hindenburg. Speculation looms over the accounting firm’s impending exit from the Indian conglomerate.
Amidst ongoing uncertainty, US-based Deloitte Haskins & Sells LLP is rumored to be on the brink of disengaging from Adani Ports & Special Economic Zone Ltd, according to media reports.
The move comes in the wake of Deloitte’s prior expression of apprehension over transactions involving Adani Ports and three external entities. This reaction, closely linked to the Hindenburg short seller report, marked the latest twist in the trouble that has gripped the Adani Group.
The impetus for the potential separation stems from Deloitte’s inability to verify certain claims made by Adani Ports, and its uncertainty about the firm’s adherence to local regulations. While the reports remain unconfirmed at present, insiders anticipate a formal announcement in the near future. Both Deloitte and Adani Ports have refrained from commenting on the issue, noted Bloomberg, the financial media outlet.
Furthermore, according to a Reuters report quoting a reliable source, Deloitte had urged Adani Ports to conduct an independent investigation into the related party transactions spotlighted by the Hindenburg report. Deloitte’s reported decision to resign followed Adani Ports’ apparent reluctance to initiate such an inquiry.
The contentious Hindenburg Research report, has cast aspersions on the group’s corporate governance practices. Since then, the group has been working to restore investor confidence by addressing its debt obligations.
The Adani Group has steadfastly denied all allegations levied against it, decrying them as a “malicious attempt” aimed at tarnishing its reputation. In a noteworthy turn, a panel of the Supreme Court stated in May that it was “not possible” to definitively conclude regulatory failure concerning the allegations of price manipulation.
