India’s Adani Group Corporation issued a response on Sunday to a report by short-seller Hindenburg Research that triggered a $48 billion collapse in its shares, saying it complied with all local laws and had provided necessary information to regulators, Reuters writes.

The conglomerate, led by Asia’s richest man Gautam Adani, said the Hindenburg Research report published last week was aimed at allowing the U.S. short seller to lock in profits without providing evidence of its allegations.

As a result of last week’s report, Adani’s fortune shrank and he dropped to seventh place on Forbes’ list of richest people.

The Adani Group reacted when its flagship company Adani Enterprises sold $2.5 billion worth of shares.The Hindenburg Research report cited alarming information about the conglomerate’s debt levels and use of tax havens.

The Adani Group believes that the report was only created to allow Hindenburg Research, a known short seller, to make huge financial profits through improper means at the expense of countless investors. The firm said on its website that the response to the Adani report largely confirmed its findings and ignored key questions. The firm confirmed that it had short positions in Adani through US-traded bonds and derivatives not traded in India.

One of the major issues raised in the report is how the Adani Group used offshore companies in tax havens such as Mauritius and the Caribbean Islands. The fact is that some offshore funds and shell companies secretly hold shares in Gautam Adani’s listed firms.

A report by Hindenburg Research mentions that 5 of Adani’s 7 key listed companies have a current liquidity ratio below 1, suggesting increased short-term liquidity risk. Meanwhile, the key listed companies have substantial debt which has put the entire group in a precarious financial position and the shares of the 7 Adani firms, have a potential downside of 85% due to exorbitant valuation.

In response, the Gautam Adani group denied the allegation and said that its companies have consistently deleveraged over the last decade.

The Hindenburg Research report and its implications represent one of the biggest challenges the Indian billionaire, whose business interests range from ports, airports, mining and energy to media, will face.