Ace investor Mark Mobius has joined a growing chorus that have dismissed the recent indictment by the US Department of Justice against Adani Group officials as a frivolous expense, suggesting that such actions will likely fade away once Donald Trump takes over as the President.
Mobius questioned the independence of the DoJ and its "politically motivated" actions, particularly regarding Indian businesses. He said under Trump's leadership, the department would shift its focus away from overseas matters, including the Adani probe.
"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? Spending all this money on a trial which probably won't go anywhere?" Mobius told news agency IANS on Tuesday.
The Justice Department, alongside the US capital markets regulator Securities and Exchange Commission, recently filed an indictment and civil complaint in a case allegedly involving the Adani Group in a New York court.
The Indian conglomerate has strongly denied the allegations, labeling them "baseless".
Mobius also questioned why the Adani Group should face trial in the US if there were wrongdoings, suggesting that such matters should be handled in India. He noted that despite the US-related challenges, Adani Group's stocks have performed well, as investors recognise the business will continue to thrive.
"I believe that there would be another implication where the Justice Department will be reorganised in America, and will be asked to be less and less involved in overseas situations and more and more with the domestic ones," said the top investor.
A recent Bernstein report highlighted that the Adani Group is now in a stronger position than during the Hindenburg attack of January 2023, citing improvements in share pledges, leverage, debt repayment, and valuations.
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