Adani Group has suspended work on the R34,900 crore petrochemical project in Gujarat, as it focuses on resources to consolidate operations and address investor concerns following a damning report by a US-based short seller, sources said. The group’s flagship Adani Enterprises Ltd in 2021 incorporated a wholly owned subsidiary, Mundra Petrochem Ltd, for setting up a greenfield coal-to-PVC plant in Kutch district of Gujarat.

But after Hindenburg Research’s January 24 report alleging accounting fraud, stock manipulations and other corporate governance lapses chopped off about $140 billion from the market value of Gautam Adani’s empire, the apples-to-airport group is hoping to claw back and calm jittery investors and lenders through a comeback strategy.