The Securities and Exchange Board of India (SEBI) has cleared Adani Group companies and key promoters of any wrongdoing in connection with allegations
made by short-seller Hindenburg Research. Hindenburg had accused several Adani entities -- including Adani Ports & SEZ, Adani Power and Adani Enterprises - of violating SEBI regulations, engaging in unfair trade practices and conducting insider trading. After a thorough investigation, SEBI has found no evidence to substantiate these claims, effectively giving the group and its promoters, including Gautam and Rajesh Adani, a clean chit. In two separate orders, the regulator found no violations, noting that at the time such transactions with unrelated parties did not qualify as related party dealings (the definition was expanded only after a 2021 amendment). It also noted that the loans were repaid with interest, no funds were siphoned off and hence there was no fraud or unfair trade practice. Accordingly, all proceedings against the Adani Group have been dropped. Hindenburg, in January 2021, alleged that the Adani Group used three companies -- Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure -- as conduits to route money between Adani group firms. The claim was that this helped Adani avoid rules on related party transactions, possibly misleading investors. Earlier in January 2024, the Supreme Court had also ruled that no investigations into Adani Enterprises should proceed beyond the one already being conducted by SEBI.
