officers search BBC offices in

Delhi and Mumbai

Adani hires Grant Thornton for some independent audits after Hindenburg fallout -sources

pr ofit report

India s Adani Group has appointed accountancy firm Grant Thornton for independent audits of some of its companies in a bid to discredit claims by short-seller Hindenburg Research that have battered its stocks and bonds, two people familiar with the matter said on Monday

Indian tax officers searched the BBC’s bureaus in New Delhi and Mumbai on Tuesday, the British broadcaster said, weeks after the government came down hard against a BBC documentary critical of Prime Minister Narendra Modi’s role in the 2002 Gujarat riots

The documentary had focused on the Hindu nationalist politician’s leadership as chief minister of the western state during the deadly communal riots, in which at least 1,000 people were killed most of them Muslims, though activists put the toll at over twice that number

“The Income Tax Authorities are currently at the BBC offices in New Delhi and Mumbai and we are fully cooperating We hope to have this situation resolved as soon as possible the BBC said in a statement

The tax department did not respond immediately to emails seeking comment

One of two sources in the BBC’s New Delhi of- fice told Reuters that tax officials were speaking with the accounts officer and no one was allowed to leave

While the search was underway, television news crews set up outside the office near Connaught Place, in central Delhi, to report developments

The main opposition Congress party condemned the tax department’s actions

“The IT raid at BBC’s offices reeks of desperation and shows that the Modi government is scared of criticism,” lawmaker and Congress General Secretary K C Venugopal wrote on Twitter “We condemn these intimidation tactics in the harshest terms This undemocratic and dictatorial attitude cannot go on any longer ”

Modi s Bharatiya Janata Party (BJP) said Indian institutions work independently and the tax department was “within law in looking into tax compliance”

“India is a vibrant democracy where no one is above the law,” Gopal Kr- ishna Agarwal, a BJP spokesman, said Last month police in Delhi detained students as they gathered to watch the documentary that the government has dismissed as propaganda India s foreign ministry in January said the documentary was meant to push a discredited narrative”, was biased, lacked objectivity and showed a “continuing colonial mindset” The BBC has stood by its reporting for the documentary Modi ruled Gujarat for more than a decade before becoming prime minister in 2014 Accusations he did not do enough to stop the rioting have dogged his career Modi has always denied any wrongdoing In 2013, a panel appointed by the Supreme Court said there was insufficient evidence to prosecute him

A suspected Muslim mob set fire to a train carrying Hindu pilgrims in Gujarat in February 2002, setting off one of independent India s worst outbreaks of communal violence

The appointment marks the first major effort by Adani Group to defend itself in the wake of a Jan 24 report by Hindenburg that accused it of improper use of offshore tax havens and stock manipulation The conglomerate, led by billionaire Gautam Adani has strongly denied the allegations but investors remain concerned Shares in the group’s seven listed subsidiaries have cumulatively lost about $120 billion in market value in the last three weeks Adani Group said last week it was considering independent evaluation of issues relating to legal compliance, related party transactions and internal controls following the Hindenburg report The appointment of Grant Thornton is reported here for the first time Grant Thornton has been hired to conduct independent audits of some Adani Group companies, said the sources, declining to be named as the appointment is confidential One of the sources added that Grant Thornton would look at whether related-party transactions at the Adani Group complied with corporate governance standards Grant Thornton and Adani Group did not immediately respond to a request for comment Adani Group sought to reassure investors on Monday, saying it had strong cashflows, its business plans were fully funded and that it was “confident in the continued ability of our portfolio to deliver superior returns to shareholders But regulatory pressure has been increasing India’s market regulator confirmed on Monday it was investigating the report by Hindenburg as well as market activity immediately before and after the report was published The U S short-seller ’s report said it had identified numerous “undisclosed related party transactions” by both listed and private Adani companies, alleging it was in violation of Indian disclosure laws In its rebuttal, Adani had said “all related party transactions are at arm’s length properly disclosed and reviewed/audited by statutory independent auditors ”