Adani triumphs as SEBI clears group of all Hindenburg fraud charges

The Securities and Exchange Board of India (Sebi) has delivered a sweeping clean chit to Gautam Adani, his brother Rajesh Adani, and key Adani Group firms, dismissing every allegation of fraud, insider trading, and market manipulation raised by US short-seller Hindenburg Research.

In two detailed orders, Sebi said its probe found no proof that Adani entities violated the Sebi Act or indulged in fraudulent or unfair trade practices. Alleged related-party transactions — flagged by Hindenburg as conduits for round-tripping — were determined to be genuine, interest-bearing loans that were fully repaid and legally permissible under rules prevailing during the investigation period.

“The allegations made against the noticees are not established,” Sebi’s whole-time member Kamlesh Varshney wrote, ruling that no penalties were warranted.

The verdict aligns with findings earlier this year by a Supreme Court-appointed expert panel, which also found no prima facie evidence of wrongdoing.

Hindenburg’s January 2023 report had sent shockwaves across markets, accusing Adani of orchestrating “the largest corporate fraud in history” and wiping nearly $150 billion from the group’s market value. Shares of Adani Enterprises alone plunged 70% in the aftermath. But the regulator’s latest ruling has now dismantled the short-seller’s explosive claims.

Sebi acknowledged that funds were routed through private entities like Milestone Tradelinks and Rehvar Infrastructure but noted that, at the time, disclosure norms did not classify such transactions as related-party deals. Stricter norms only came into force from April 2023.

Reacting to the clean chit, Adani said the order vindicates what the group has consistently maintained. “Transparency and integrity have always defined the Adani Group. Those who spread false narratives owe the nation an apology,” he posted on X, adding that the group remains committed to “India’s institutions, people, and nation-building.”

The ruling effectively closes one of the most high-profile corporate controversies in recent memory, turning the page on allegations that shook global markets and put India’s regulatory credibility under the microscope.