Global investor Mark Mobius has fiercely criticised the United States Department of Justice (DoJ) over its recent indictment of Adani Group officials, describing the investigation as an unnecessary and costly exercise. Mobius expressed optimism that Donald Trump’s anticipated return to the presidency would bring an end to such politically charged initiatives, refocusing the DoJ on domestic priorities.
Mobius, who leads the Mobius EM Opportunities Fund for emerging markets, did not mince words, calling the Adani probe emblematic of wasteful governmental overreach. “My guess is that Donald Trump will come in and whoever he appoints to run the Justice Department will say, ‘What are you guys doing? Sticking your nose into Indian businesses and spending all this money on a trial that probably won’t go anywhere?’” Mobius stated in an interview with media.
The DoJ, alongside the US Securities and Exchange Commission (SEC), recently filed an indictment and a civil complaint in a New York District Court against senior officials of the Adani Group. While the allegations remain undisclosed in detail, the Group has categorically rejected them, describing the charges as baseless and politically motivated.
The Adani Group has vowed to defend itself through legal channels, emphasising that it operates with full transparency and adherence to the law. However, Mobius and other observers have raised concerns about the independence of US regulatory bodies, suggesting that the indictment may have geopolitical undertones rather than being purely driven by regulatory concerns.
“There is a good chance that the Justice Department will move away from this trial once Trump assumes office,” Mobius remarked. He believes the new administration would prioritise reorganising the department to reduce its involvement in international disputes and focus instead on domestic legal matters.
Despite the legal challenges in the United States, the Adani Group’s stocks have defied expectations, staging a remarkable comeback on the Indian stock markets. Over just three trading sessions, Adani stocks added more than Rs 2 lakh crore to their market capitalisation, showcasing the Group’s resilience and market confidence.
Mobius noted that investors increasingly recognise the strength of Adani’s operations despite external pressures. “A lot of investors began to look at this and said, ‘Adani is under pressure, but their business will continue to operate well.’ It’s a testament to the underlying strength of their operations,” he explained.
A Bernstein report further bolstered this confidence, highlighting Adani Group’s solid footing in four critical areas:
- No Share Pledges: A significant factor reassuring investors about the Group’s stability.
- Leverage Reduction: Improved financial management has reduced the Group’s risk exposure.
- Debt Repayments: Timely repayments have enhanced its credibility.
- Valuations: A stronger market position compared to the turbulence of January 2023, when it faced allegations from Hindenburg Research.
Mobius also took aim at billionaire financier George Soros, asserting that his global influence would significantly diminish under a Trump-led administration. “Soros made a lot of money and used it for political purposes, but his position will weaken after Trump’s return,” Mobius predicted.
Soros has been a controversial figure in global politics, known for funding progressive causes and being critical of conservative leaders, including Trump. Mobius’ comments suggest a shift in the global financial and political landscape with Trump’s anticipated re-election.
“People are beginning to realise that with Trump back in office, this DoJ situation will probably fade away,” Mobius said.
Mobius’ comments come amid increasing scrutiny of the independence and priorities of US institutions. Many analysts are questioning whether the DoJ’s probe into Adani reflects genuine concerns or serves as a geopolitical maneuver.
