SEBI gives Adani Group, Gautam Adani clean chit on Hindenburg allegations

India’s market regulator SEBI has officially cleared Gautam Adani, Rajesh Adani, and several Adani Group entities—including Adani Ports & SEZ, Adani Power

and Adani Enterprises—of all allegations raised by US-based short-seller Hindenburg Research.

In two detailed orders released on Thursday, SEBI stated that its investigation found no evidence of regulatory violations by the Adani Group. The orders addressed claims that the conglomerate routed funds through three intermediary companies—Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure—to disguise related party dealings.

SEBI noted that at the time the transactions occurred, the companies in question were not classified as “related parties” under existing rules. The definition of related party transactions was only expanded following a 2021 amendment to SEBI regulations.

“The investigation did not reveal any siphoning of funds or fraudulent conduct. The loans extended through the entities were repaid with interest, and there is no evidence of unfair trade practices,” SEBI said in its order.

As a result, all regulatory proceedings against the Adani Group related to these allegations have been formally closed.

In January 2021, Hindenburg Research published a report accusing the Adani Group of using the three entities as conduits to shuffle funds between its listed companies. The report claimed this allowed the group to bypass disclosure norms and potentially mislead investors.

The allegations triggered regulatory scrutiny in India and led to sharp volatility in Adani Group stocks.

The Adani Group has consistently denied any wrongdoing since the allegations surfaced, maintaining that all transactions were fully compliant with Indian laws.