In an unfolding revelation, regulatory filings shed light on the Adani Group’s continued association with a contracting firm, Howe Engineering Projects (India) Pvt Ltd, linked to a Taiwanese family. The firm, previously known as PMC Projects Pvt Ltd, faced allegations in 2014 of being used by Gautam Adani’s empire to channel funds abroad, a claim dismissed in 2017.
Recent filings reveal that in April 2016, PMC’s engineering business was merged into Howe, which has since remained an Adani contractor for major infrastructure projects in India. Deloitte’s challenge in determining Howe’s status as a related party led to red flags regarding payments by Adani’s ports company, resulting in Deloitte resigning as the auditor for Adani Ports & Special Economic Zone Ltd. in August.
Despite accusations, Adani maintains that Howe and PMC operate independently and transactions comply with the law. The Securities and Exchange Board of India is currently probing allegations against Adani made by short seller Hindenburg Research.
Owned by Taiwanese entrepreneur Chang Chien-ting, PMC Projects and Howe share a Mauritius-based entity. The Changs’ financial dealings with Adani companies go back years. Questions arise over undisclosed payments from Adani to Howe, raising concerns about transparency in Adani’s financial dealings.
Howe’s operations, mainly for Adani, involve managing construction projects funded by Adani. The firm, housed in Adani’s Shantigram township, is spotlighted for its unclear financial transactions, with concerns raised over undisclosed payments, deep ties, and potential related party transactions.
Adani’s resilience amid allegations and regulatory scrutiny raises governance concerns. The conglomerate denies any wrongdoing and has attracted new global investments despite lingering questions about its financial practices.
By Bloomberg
