HP tax officials have investigated the Adani Group’s facilities in response to suspicions of tax fraud.

The Himachal Pradesh State Excise and Taxation Department has searched the Adani Wilmar outlets and other Adani Group enterprises in the area. A 50:50 joint venture between Singapore’s Wilmar and the enormously successful Adani Group, In all, Himachal Pradesh is home to seven Adani Group companies.

The companies are also significant grocery suppliers. The Himachal Pradesh administration had stated that it wanted to end the impasse caused by the shutdown of two cement factories and the union representing truck drivers’ ongoing strike. The industries minister would speak with the Adani group to settle the issue, according to Chief Minister Sukhvinder Singh Sukhu’s statement on Saturday.

The Adani Wilmar offices in Solan, Himachal Pradesh, have been raided.

Due to a disagreement over freight rates, two cement facilities located in Barmana (Bilaspur district) and Darlaghat (Solan district), respectively, owned by ACC Limited and Ambuja Cements, have been shut down since December 14. The Adani Group now operates seven businesses in Himachal Pradesh, ranging from the delivery of food goods to cold shops for fruits.

On February 8, the firm announced its results for the December quarter, increasing its consolidated profit by 16 percent to Rs 246.16 crore. Aftermarket participants voiced concerns regarding the eligibility of the firms in the ports-to-power conglomerate, index provider Morgan Stanley Capital International (MSCI) said that it was investigating the free float status of Adani Group equities.

“MSCI has received comments from a range of market players about the eligibility and free float assessment of various securities affiliated with the Adani Group for the MSCI Global Investable Market Indexes (GIMI),” according to the company’s statement. At the time this report was being written, Adani Enterprises’ stock was down 2.62 percent and was trading at 2,102 per share on the BSE.

On the other side, the price of Adani Wilmar’s stock has increased 5% to Rs. 440.30 per share on the BSE. Since the activist short seller company Hindenburg Research in the US accused the conglomerate of unlawful use of offshore tax havens, accounting crimes, and stock manipulation, the market value of seven Adani Group firms has suffered. Adani Group breaks its silence following raids on its Himachal premises, saying “no violations were identified.”

The Adani Wilmar Group issued a statement today following a late last night facility inspection by the Himachal Pradesh Excise and Taxation Agency on grounds of possible GST nonpayment. A day after the “raids,” the organization claimed in a statement that the investigators had found no operational problems.

The Parwanoo South Zone Enforcement division of the Himachal Excise and Taxation Department evaluated products that belonged to Adani Wilmar Ltd. late on Wednesday night in Parwanoo. As part of their routine responsibilities, representatives from the excise and tax agencies were examining goods.

The competent authorities conducted “a normal examination,” according to the Adani Wilmar Group’s statement, and there was no raid. In addition, it stated that the issues are exclusive to cash GST payments, citing GST law under Rule 86B. According to Adani Group, it is not necessary to pay tax obligations in cash. According to the Adani Wilmar Group, all depot activities are running smoothly following the visit, and all operations are in complete compliance with all applicable laws and regulations.

Adani Wilmar’s entire statement

GST authorities paid a visit to one of Adani Wilmar’s depot warehouses in Parwanoo, Himachal Pradesh, last evening. During this regular inspection, the personnel offered their full cooperation to the government and local authorities. The officials discovered no anomalies in the company’s operations and activities. We would like to clarify that, in response to the concerns about cash GST payments, the corporation is not obligated to pay the tax due in cash, according to GST rules under Rule 86B.

We want to emphasize that this was a normal inspection conducted by the There was no raid, as previously said or reported in the media, and the necessary authorities were consulted. Every aspect of our operations complies fully with all relevant rules and regulations because we are dedicated to conducting business in an ethical and open manner.”We would like to emphasize that the depot activities have resumed regularly following the inspection,” the statement said.

Adani faces a new danger as MSCI investigates the free float of the group’s stocks.

On Thursday, India’s Adani Group faced further concerns as global index provider MSCI said that it was evaluating the free float designation of several group business stocks. Billionaire Gautam Adani has had the worth of seven enterprises in the group he established slashed by $110 billion after US short-seller Hindenburg Research accused the organization of unlawful use of offshore tax havens and stock manipulation.

According to analysts, a change in free float status might influence the weightings of MSCI index components, potentially causing funds to move positions, as many investments internationally are aligned to such indexes.

“Some investors use the MSCI index as a benchmark,” said Quantum Securities director Neeraj Dewan. “We might see greater pressure on specific Adani Group equities depending on the result of the MSCI investigation.”

Norway’s sovereign wealth fund, the world’s largest stock investor, revealed on Thursday that it has sold out of the Adani Group since the beginning of the year, dumping shares in three companies for more than $200 million. The opposition parties in India heckled Prime Minister Narendra Modi in the upper chamber of parliament on Thursday, demanding an inquiry into the charges against the Adani Group.

“No matter how much dirt you throw, the lotus will continue to grow,” Modi said, referring to his party’s electoral symbol, the lotus flower. “MSCI has judged that the characteristics of some investors are sufficiently unknown that they should no longer be categorised as free float,” said the MSCI, which is located in the United States. “As a result of this discovery, a free-float examination of Adani Group shares has been undertaken.” Changes to Adani securities connected to the MSCI Global Investable Market Indexes are likely to be published later on Thursday as part of MCI’s February monthly review.

A source with direct knowledge of the matter claims that the Securities and Exchange Board of India is looking into the share price surge for the Adani Group. The group’s ability to generate capital may be in jeopardy, according to Moody’s rating agency, and the central bank of India is looking into lenders’ holdings.

edited and proofread by nikita sharma