Mumbai, Sep 18: The Securities and Exchange Board of India (SEBI) on Thursday gave a clean chit to the Adani Group and its chairman Gautam Adani in connection with allegations made by US-based short-seller Hindenburg Research about fund routing and concealment of related party transactions.
In two separate orders, the market regulator said it found no violations of securities laws. SEBI concluded that the transactions in question, carried out through three companies — Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure — did not qualify as “related party transactions” under the rules prevailing at the time. The definition of related parties was broadened only after amendments made in 2021.
The regulator further observed that the loans routed through these entities were duly repaid with interest, and there was no evidence of fund siphoning, fraud, or unfair trade practices. “Accordingly, all proceedings against the Adani Group stand dropped,” the order said.
Hindenburg Research had, in January 2021, alleged that the Adani Group used the three entities as conduits to shuffle funds between group companies, thereby avoiding related party transaction disclosures and potentially misleading investors.
Thursday’s ruling by SEBI effectively closes a major regulatory inquiry into one of the most high-profile allegations against the conglomerate, which had triggered sharp volatility in Adani Group stocks and sparked a political storm in India over corporate governance and regulatory oversight.
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