New Delhi: Former US treasury secretary and former Harvard University president Larry Summers has compared the recent allegations in the Hindenburg Research report on the Adani group to Enron scandal in the US. This, the economist claimed, could be India’s “possible Enron moment”.During Bloomberg’s Wall Street Week last Friday, Summers was asked what he was looking for from the G20 meetings. He didn’t name Adani, but said, “We haven’t talked about it on the show but there’s been a kind of possible Enron moment in India…”“And I imagine with India emerging as the world’s largest country and the meeting taking place in India, there’s going to be a lot of curiosity from all present about how that’s going to play through and what – if any – larger systemic implications that’s going to have for India,” he continued.Summers was likening the situation in India now to the accounting scandal involving the Enron Corporation, a US-based energy company, that was exposed in 2001. Executives of the company had falsely inflated revenues and hidden trading losses, and once this became public the company declared bankruptcy. Enron share prices plummeted in 2001.When the scandal came to light, US regulator the SEC, credit ratings agencies and investment banks were accused of negligence and lack of due diligence, and in some cases even deception.Released on January 24, Hindenburg Research’s report on the Adani group has made allegations of large-scale accounting fraud and stock manipulation. Since then, group companies’ stock prices have been falling rapidly. The Adani group has denied all allegations, and even claimed that the allegations are an attack on India as a whole.In an interaction on Tuesday with institutional investors, Adani Group CFO Jugeshinder Singh said that while foreign banks took ‘credit decisions,’ Indian banks took ‘name decisions’. Of the total group debt, over half is foreign debt in the form of overseas bonds and loans taken from foreign entities, a fifth is from foreign banks and a fourth is from domestic banks. Singh pegged the group’s gross debt at $30 billion.The Hindu Business Line reports that some Indian banks had expressed reluctance to lend more to Adani Group companies, inducing a cash crunch in some projects. While it could not be ascertained what exactly Singh meant by ‘name decisions’, throughout the crisis, foreign banks have been supportive of the Group in terms of continued funding.