Gautam Adani lost half of his wealth.

Gautam Adani was the fourth richest person in the world till few days ago. The self made Indian industrialist was wealthier than Bill Gates or Warren Buffett. His personal property around to be $120 billion.

An American short seller named Hindenburg Research who bet against Adani's businesses charged him with committing " The largest scam in corporate history. "

Adani companies has dropped $110 billion in value since that time. His personal wealth has decreased by half to just have $61 billion.

Although the Adani Group claims that the analysis is "illogical" and "baseless". Investors have doubts about the company statement. Questions are rising day by day. Following a protest from opposition MPs Adani's financiers and business partners appear to be confirming their connections to the group of companies. The Indian federal government is said to be investigating his business.

What does Gautam Adani do?

Gautam Adani is now sixty years old. He was set up Adani Group more than 30 years ago. He was a college dropout who created a huge economic empire that included mining, logistics, energy generation, and infrastructures. He was the Asia's richest man in September. He briefly displaced Jeff Bezos to take second place in the world's wealth rankings. He is additionally known as Narendra Modi close buddy.

What allegations are being made against him?

Hindenburg Research released a report in last days of January. They blamed Adani and his firms for massive fraud and "brazen stock manipulation". They stated that it occurred over decades and investors were taken aback. The firm disclosed that they got a short position in the Adani Group companies which would allow it to profit from a decline in their value.

Hindenburg asked 88 queries to Adani that raised issues about the financial health of his conglomerate's finances. They shifted queries from the group offshore companies to queries about the reason for its such a complicated interlinked business structure.

In reaction to the allegations Adani Group has stated it is considering taking legal action. They claimed Hindenburg of battling a calculated attack on India. They stated that the investment company kept only its own financial interests in mind. Experts claim that Adani Group has failed to sufficiently address the issues mentioned by the analysis.

How investors think about?

As a result of the allegations investors have left because they don't want to get caught by the scammers. Since Hindenburg's analysis was released on January 24. The shares of Adani Enterprises have fallen by about 55%.

The business is currently facing trouble. After 24 hours Adani Enterprises suddenly canceled a $2.5 billion share sale transaction on Wednesday.

On Friday the majority of Adani Group of companies stocks dropped once more. Five listed Adani companies had their trading suspended by India's stock exchanges after their shares dropped by the daily restrictions of 5% and 10%.

TotalEnergies a significant business partner said that Adani has agreed to allow to conduct a general audit. Adani didn't give a confirmation.

The giant French energy company defined its $3.1 billion exposure to Adani through joint projects in India. They also said these relationships were undertaken in full compliance with the relevant legislation, specifically Indian laws.

What happens next?

Questions are being raised about how Adani's business will continue to generate revenue in the months ahead of the sales rise.

One of the question raised by Hindenburg's is the huge financial debt load of Adani businesses. On Friday according to Moody's agency the financial crisis was going to make it difficult for the company to generate revenue.

On Wednesday Adani said that his company is still in good health and that officials will review its capital market strategy once the market stabilizes.

He further said We design a very healthy balance sheet with strong revenues and secure assets. We have a perfect track record of maintaining our debt."

The sell-off's effects might not be limited to Adani. If the price of the assets of Adani Group keeps falling. Indian banks that hold those assets would also be impacted.

On Friday the Reserve Bank of India stated that the banking industry remains strong and stable. They promised to monitor the issue.

The Securities and Exchange Board of India (SEBI) announced on Saturday about the recent market turmoil that it has seen unusual price movement in the stocks of a business group. They said that suitable action would be taken if such information came to SEBI notice as it was reviewed.

It was further stated by the market authorities that it is dedicated to maintaining market integrity.

India Inc. is defending itself.

This incident is the cause of rising instability in New Delhi. Indian opposition MPs have called for an action into the Hindenburg report. On Wednesday they protested inside the parliament as the finance minister delivered the budget for the year.

On Friday normal business will be suspended due to the disturbance caused by their demands. To allow an urgent discussion of the Adani problem both houses of parliament were delayed until Monday.

The opposition Congress party tweeted "Action is being taken against Adani all over the world but PM Modi is silent" When will our government take action?

According to the World Bank prediction last month This year India's economy will rise more than that of any other nation. The representatives of the nation relied on the country's generally positive economic outlook.