India’s market regulator, Securities and Exchange Board of India (SEBI), has absolved the Adani Group and its billionaire founder Gautam Adani of certain allegations of financial impropriety linked to related-party transactions.
The decision marks a partial reprieve for the conglomerate following intense scrutiny since early 2023, when US short seller Hindenburg Research published a report accusing the group of large-scale corporate fraud.
SEBI findings on related-party transactions
SEBI said on Thursday that it found no evidence supporting Hindenburg’s claim that Adani entities had used associated companies to route funds into listed firms.
According to two separate orders published on its website, SEBI determined that companies such as Adicorp Enterprises Pvt., Milestone Tradelinks Pvt., and Rehvar Infrastructure Pvt. did not qualify as related parties under existing regulations.
The regulator said transactions between these firms and Adani’s businesses did not meet disclosure thresholds under India’s related-party rules.
“There was no violation of SEBI’s disclosure norms,” board member Kamlesh C. Varshney stated in the orders.
Hindenburg had alleged that funds were funneled through these entities to bolster Adani Power Ltd. and Adani Enterprises Ltd., both of which are publicly traded.
Adani Group, which has consistently denied wrongdoing since the publication of Hindenburg’s report in January 2023, reiterated that its disclosures were fully compliant.
Wider allegations still under probe
While SEBI’s latest ruling removes some of the immediate regulatory pressure tied to related-party claims, it does not amount to a full exoneration.
The January 2023 Hindenburg report alleged extensive corporate fraud, stock manipulation, and governance failures across the Adani empire.
The claims sparked a dramatic sell-off, wiping out more than $150 billion in market value at one point across Adani’s listed entities.
The fallout from the allegations prompted India’s Supreme Court to direct SEBI to conduct a detailed investigation into the group’s operations and financial practices.
Thursday’s orders close one chapter of that probe but leave other aspects unresolved.
Hindenburg Group in January 2025 announced it was closing its operations down.
International scrutiny persists
Beyond the Indian regulatory process, Adani Group remains under international legal pressure.
US federal prosecutors are continuing to investigate a $250 million bribery scheme allegedly involving the conglomerate.
In November 2024, Gautam Adani was indicted in connection with the case.
The US probe adds another layer of uncertainty for the group as it navigates efforts to restore investor confidence.
For now, SEBI’s conclusion on related-party allegations offers a measure of relief for Adani Group and its shareholders.
However, questions raised by Hindenburg and ongoing investigations in both India and abroad ensure that the conglomerate’s governance practices and financial transparency will remain under scrutiny.
The mixed outcome underscores the challenges facing Adani as it attempts to move beyond one of the most damaging corporate controversies in India’s recent history.
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