March 19 (Reuters) – Adani Group has suspended work on a 349 billion rupee ($4.2 billion) petrochemical challenge at Mundra in India’s western Gujarat state because it focuses on consolidating operations and addressing investor considerations after the Hindenburg shortseller report, in response to the Press Trust of India.

The report was carried within the Economic Times on Sunday.

The group has requested distributors and suppliers to “suspend all activities of the scope of work and performance of all obligations” for Mundra Petrochem Ltd’s Green PVC challenge “till further notice,” the newspaper reported, citing mails seen by PTI.

Adani Group didn’t instantly reply to a Reuters’ request for a remark.

On Jan. 24, Hindenburg Research alleged inventory manipulation and improper use of tax havens, and flagged considerations over debt ranges on the firm, which Adani has denied.

India’s high court docket has since requested market regulator SEBI to analyze Adani Group for any lapses associated to public shareholding norms or regulatory disclosures. read more

($1 = 82.5200 Indian rupees)

Reporting by Jahnavi Nidumolu in Bengaluru; Editing by Jacqueline Wong

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