SEBI clears Adani group of Hindenburg-related allegations

The Securities and Exchange Board of India (SEBI) has disposed of proceedings against Adani Group entities—Adani Ports & Special Economic Zone Limited, Adani Power Limited, and Adani Enterprises Limited. Individuals Mr. Rajesh Shantilal Adani, Mr. Gautam Shantilal Adani, Mr. Jugeshinder Singh, and intermediary entities Milestone Tradelinks Private Limited and Rehvar Infrastructure Private Limited were also cleared. The investigation, initiated following the Hindenburg Report, focused on alleged related party transaction violations and fraudulent practices from financial years 2018-19 to 2022-23.

SEBI determined that the loan transactions, conducted through Milestone Tradelinks and Rehvar Infrastructure, did not qualify as "related party transactions" under the un-amended LODR Regulations during the investigation period. This conclusion was based on a plain reading of the regulations, the prospective nature of the 2021 amendments, past SEBI precedents, and an expert committee's report to the supreme court.

Consequently, SEBI found no violation of Section 12A of the SEBI Act or PFUTP Regulations. There was no evidence of money siphoning, fund diversion, or un-repaid loans, with all amounts, including interest, returned before the investigation began. The allegations against the entities and individuals are therefore not established.