India's Adani hit by more losses amid calls for probe

MUMBAI — Beleaguered Indian tycoon Gautam Adani denied on Friday that his rise to become Asia's richest person — a title he has lost in a phenomenal stock rout — was due to Prime Minister Narendra Modi, as shares in his conglomerate slumped again.

The combined market capitalization of his listed units has collapsed by more than $100 billion since US short-seller Hindenburg Research — which makes money by betting on shares falling — released an explosive report last week.

It accused Adani of accounting fraud and artificially boosting its share prices, calling it a "brazen stock manipulation and accounting fraud scheme" and "the largest con in corporate history".

Opposition lawmakers blocked Parliament proceedings for a second day on Friday, chanting slogans and demanding a probe into the business dealings of Adani.

"We have no connection" with the Adani controversy, Parliamentary Affairs Minister Pralhad Joshi told reporters outside Parliament in what is being described as the first government reaction.

Critics said Adani's alleged close relationship with Modi, who is also from Gujarat state, has helped him win business and avoid proper oversight.

"These allegations are baseless," Adani told India Today television on Friday, adding that their shared origins made him an "easy target" for such claims.

"The fact of the matter is that my professional success is not because of any individual leader."

His comments came as shares in his flagship firm Adani Enterprises were repeatedly suspended on the Bombay Stock Exchange, hitting multiple trading stops on the way to falling by 25 percent.

Adani has seen his fortune plummet by tens of billions of dollars, dumping him out of the realtime Forbes rich list top 20, where he used to be third.

Canceled sale

A 60-year-old publicity-shy school dropout, Adani has seen his operations expand at breakneck speed, with Adani Enterprises shares soaring more than 1,000 percent over the past five years.

Late on Wednesday, his main firm canceled a $2.5-billion stock sale meant to help reduce debt levels that have long been a concern, restore confidence and broaden its shareholder base.

But the issue failed to attract "mom and dad" retail investors and only sold out thanks to large institutional buyers, fellow Indian moguls and $400 million from the United Arab Emirates' IHC.

Agencies Via Xinhua