The Securities and Exchange Board of India (SEBI) has cleared the Adani Group and its chairman, Gautam Adani, of serious allegations made by US-based short-seller Hindenburg Research.
The allegations, made in January 2021, claimed that the conglomerate routed funds through shell companies to conceal related-party transactions and mislead investors.
In two detailed orders issued on Thursday, SEBI found no evidence of wrongdoing and formally closed the proceedings against the group.
SEBI examined transactions involving three companies named in the Hindenburg report — Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure.
The report had alleged that these entities acted as conduits for routing funds among Adani companies, allegedly to bypass disclosure norms related to related party transactions.
However, SEBI clarified that at the time these transactions occurred, the parties involved did not meet the criteria for related parties under the applicable rules.
SEBI clarified that lawmakers expanded the definition of related party transactions only after the 2021 amendments.
The regulator also confirmed that the Adani Group had repaid the flagged loans and financial dealings with interest.
SEBI found no diversion of funds, no siphoning of capital, and no evidence of fraud or unfair trade practices in connection with the transactions in question.
With no regulatory breach identified, SEBI officially dropped all proceedings against the Adani Group and its chairman, Gautam Adani.
This development comes as a significant relief for the Adani Group, which has faced heightened scrutiny and sharp fluctuations in market valuation following the Hindenburg report.
While the group has consistently denied any wrongdoing, SEBI’s clean chit lends institutional credibility to its defence.
The regulator’s findings may also influence ongoing legal challenges and investor sentiment both in India and internationally.
Hindenburg Research, known for short-selling reports, had accused the Adani Group of accounting irregularities and stock manipulation, particularly through the use of obscure entities.
The report created a global stir, wiping off billions in market value from Adani companies and triggering regulatory and political debate in India.
Taking to X, Adani Group chairman posted, “After an exhaustive investigation, SEBI has reaffirmed what we have always maintained, that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group.”
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