I-T may probe 20 entities over Adani share profits

The income-tax department may probe several domestic and overseas entities for tax evasion over profits from short-selling shares of companies belonging to the Adani Group following the controversial Hindenburg Research report on the conglomerate published in January, even as the market regulator investigates possible collusion between the firm and at least 20 entities, including security firms and media professionals, at least four people aware of the development said.

- Rajeev Jayaswal

The market regulator, Securities and Exchange Board of India (Sebi), is basing its investigation party on a report from the Enforcement Directorate that said that certain entities seem to have had prior information about the report and gained materially by short-selling stocks of the Adani Group, with some other people, including journalists, helping amplify the content of the report, they said, requesting anonymity.

A senior ED official, who asked not to be quoted, told HT that their probe was incidental. "The intelligence wing of our agency got some information in July about this. Since Sebi was probing it, we immediately sent the report to them. Now, if they file a complaint on this, then we can probe further. We are awaiting directions from them and the court," he said, adding, "a large number of investors were impacted and that's why we are concerned."