On Wednesday, Israel’s envoy to India, Nargiron, said the embattled Adani Group had paid in full to acquire the Haifa port.

As Israel and India end 30 years of diplomatic ties, Israel’s envoy stressed the “strategic” importance of Adani’s investment and looked forward to more investments from the company elsewhere in Israel.

“We have two ports in the Mediterranean Sea. Haifa is a strategic asset. From our perspective, the fact that we are giving it to an Indian company symbolises a deep trust for keeping your strategic asset in the hands of an Indian company,” Ambassador Geelong said.

The envoy’s comments came when accusations of condemnation by US short-sellers led to a sell-off in the stock market of the Adani group of companies.

“Adani Group’s bread and butter is the port. They have the potential to make the Haifa port what it needs to be and use it to increase trade between India and Israel. We are delighted about that,” he added.

Last month, Adani Group bought Israel’s strategic port of Haifa for $1.2 billion and has vowed to transform the Mediterranean city’s skyline as part of its decision to invest more in the Jewish state, including in Tel Aviv’s open artificial intelligence lab.

Adani Group Chairman Gautam Adani, whose business empire was rocked by allegations of fraud by US short-seller Hindenburg Research, appeared with Israeli Prime Minister Benjamin Netanyahu to sign a deal to acquire Haifa Port and talked about investment opportunities.

Prime Minister Netanyahu described the Haifa port deal with the Adani Group as an “enormous milestone”, saying it would significantly improve connectivity between the two countries in many ways.

Haifa Port is Israel’s second-largest container port and the largest tourist cruise ship port.

“The Adani Group fully paid for the Haifa Port and has funds for development. Port infrastructure is the core business of the Adani Group, and they know how to do it. It is a strategic asset and will be useful to India and Israel.”

Over the past six years, the Adani Group has entered into several key partnerships with companies such as Elbit Systems, Israel Weapon Systems and Israel Innovation Authority.

Adani Ports & Special Economic Zone Ltd teamed up with local chemicals and logistics group Gadot last July to win an Israeli government bid to buy the Port of Haifa, a major trading hub on Israel’s Mediterranean coast, for about $1.2 billion.

“The acquisition of the Port of Haifa was also accompanied by significant real estate. I assure you that in the years to come, we will transform the skylines around us,” Adani said.

Adani said the India-Israel friendship dates back to September 23, 1918, when soldiers from the Indian cities of Mysore, Hyderabad and Jodhpur fought for the freedom of Haifa in Israel.