The murky dealings of four funds in Indian tycoon Adani’s empire

The funds earlier had invested in firms that went bankrupt or are being investigated or whose founders have fled India.

Four Mauritius-based funds that have attracted attention for parking almost all their money in companies controlled by Indian billionaire Gautam Adani have a history of investing in firms which ended up defaulting or were investigated for wrongdoing. Before they put about 90% of their $6.9 billion under management in the Adani empire, the funds — Elara India Opportunities Fund, Cresta Fund, Albula Investment Fund and APMS Investment Fund — held significant stakes in two companies whose founders fled India and have since been probed for money laundering, another that went bankrupt, and a fourth that was liquidated after sparring with the Ethiopian government. Because the funds are registered in the tax haven of Mauritius, their ownership structure is opaque. Cresta, Albula and Elara have been subject to at least one probe for alleged round-tripping, Firstpost website reported in 2018. This is a process illegal under Indian rules where money is transferred typically to a shell company before being returned, giving the impression the funds originate from a clean source. Indian authorities struggled to identify who ultimately controls the money, according to the report.