The Ministry of Corporate Affairs has initiated an inquiry into the financial records of two airports in Mumbai owned by the Adani Group, as disclosed by Adani Enterprises, the conglomerate’s holding company, in a statement to the stock exchanges on Friday.
The investigation is being carried out by the Ministry of Corporate Affairs’ Office of the Regional Director, Southeast Region, Hyderabad. This inquiry specifically seeks information and documentation related to Mumbai International Airport Ltd (MIAL) and Navi Mumbai International Airport Ltd (NMIAL) for the financial years spanning from 2017-18 to 2021-22.
Adani Enterprises explained in its filing with the Bombay Stock Exchange (BSE), “MIAL and NMIAL have received communications from the said Authority about the initiation of investigations of books of accounts and other books and papers in terms of section 210(1) of the Companies Act, 2013.”
The Adani Group, helmed by billionaire Gautam Adani, has a portfolio of seven airports across India. This includes Mumbai International Airport, for which the group obtained a controlling interest in August 2020. In addition to that acquisition, the conglomerate also secured the rights to construct and operate the Navi Mumbai airport.
The Ministry of Corporate Affairs’ investigation comes at a time when the Adani Group is grappling with a series of challenges and controversies. A US-based short-seller had previously accused the group of improprieties, alleging the improper use of offshore tax havens and involvement in stock manipulation.
Adani Enterprises and its affiliated entities have vowed to provide a comprehensive response to the ministry’s investigation, ensuring strict compliance with all relevant legal provisions. This development adds to the array of hurdles faced by the Adani Group as it navigates the complexities of operating airports in India while concurrently addressing allegations related to its financial practices.