SEBI clears Adani Group in allegation linked to Hindenburg report

The Securities and Exchange Board of India on Thursday cleared the Adani Group in connection with an allegation raised by United States-based Hindenburg Research that the conglomerate routed funds through three entities to hide related-party transactions.

In two separate orders, the markets regulator said that allegations against the industrialist Gautam Adani-owned conglomerate could not be established. It said that “there was no question” of devolvement of any liability on the Adani Group, adding that no penalty had been imposed.

The orders cleared Gautam Adani, his brother Rajesh Adani and key Adani Group firms – Adani Ports and SEZ, Adani Power and Adicorp Enterprises, The Indian Express reported.

The investigation pertained to allegations that Adicorp Enterprises, Milestone Tradelinks and Rehvar Infrastructure were used as a conduit to route funds from several Adani Group companies to fund Adani Power and Adani Enterprises.

In its order, the Securities and Exchange Board of India said that the transactions did not qualify as related-party dealings, the definition of which was expanded only after a 2021 amendment.

Loans were repaid with interest, no funds were siphoned off, and hence there was no fraud or unfair trade practice, it added.

The Adani Group had been facing an investigation by the Securities and Exchange Board of India since Hindenburg Research alleged in January 2023 that the conglomerate was pulling...

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