SEBI’s clean chit to Adani Group marks a landmark verdict dismissing Hindenburg allegations, as top lawyers praise the regulator’s decisive ruling, strengthening corporate credibility and investor confidence.
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NEW DELHI: The Securities and Exchange Board of India (SEBI) has given the Adani Group a decisive clean chit in the Hindenburg case, marking what many legal experts and industry observers are calling a watershed moment in corporate governance and regulatory clarity. The order, described by senior lawyers as “well-reasoned” and “durable,” closes a long-standing controversy that shook markets and raised questions about India’s regulatory framework.
Senior advocate Amit Desai hailed the regulator’s findings, stating:
“This order is going to be sustainable in the long run. Even if there is an appeal, it will not be easy to succeed against such a well-reasoned order. With this, the Hindenburg allegations are now behind the Adani Group once and for all. It will strengthen their credibility in the marketplace.”
Desai’s words reflect the broader sentiment that SEBI’s detailed investigation has shut the door on lingering doubts about the conglomerate.
Advocate Vijay Agarwal pointed out that Hindenburg itself had admitted to short-selling, which he argued exposed the real motive behind the report:
“The Supreme Court in Vishal Tiwari’s judgment had already given a clean chit. Now there’s an inquiry against Hindenburg because they admitted to short-selling. After that, nothing remains. The Adani Group has passed every litmus test. This controversy should now be considered buried.”
Advocate Nitin Meshram went further, framing the Hindenburg Report as an attempt to destabilize India’s economy:
“The Hindenburg Report was a conspiracy against India’s growth, part of a larger international plan. I always believed the allegations were myths with no substance. SEBI has found no misconduct, and the Supreme Court rejected demands for an SIT or CBI probe. Those who still doubt the order are undermining India’s regulator and its laws.”
Echoing the nationalist perspective, Advocate Ishkaran Bhandari said the episode revealed a coordinated effort to undermine Indian business:
“In India, an entire ecosystem went after a businessman to satisfy foreign interests or those who dislike Indian enterprise. Other countries protect their wealth creators, you don’t see the US trying to pull down Apple or Amazon. Even after SEBI and the Supreme Court found nothing, some lobbies will remain unsatisfied because their interest lies in weakening Indian business.”
SEBI’s Findings
The SEBI’s investigation was based on the allegation that Adani group entities had routed funds through Milestone Tradelinks Pvt. Ltd. (MTPL) and Rehvar Infrastructure Pvt. Ltd. (RIPL) to avoid classifying them as related party transactions (RPTs). The regulator, however, concluded that:
- The loans extended between FY 2018–19 and FY 2022–23 were genuine and repaid with interest.
- At the time of the transactions, the law did not classify such indirect arrangements as RPTs. The broadened definition of RPTs only came into effect from April 2023.
- There was no evidence of fraudulent conduct, market manipulation, or investor harm.
SEBI’s final order made it clear:
“Transactions of Noticees nos.1, 2 and 3 with Noticee nos.7 and 8 and vice versa, are not related party transactions, even for the purpose of Ind-AS 24. Therefore, the transactions of Noticees are not ‘related party transactions’ and were in compliance of the relevant provisions of the LODR Regulations applicable during the investigation period.”
Adani Group Chairman Gautam Adani reacted to the verdict with relief and a reaffirmation of his group’s integrity:
“SEBI has reaffirmed that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group. We deeply feel the pain of investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology.”
Adani posted on X
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Supreme Court advocate Jai Anant Dehadrai underlined the importance of SEBI’s decision:
“This is possibly the highest, the best quality clean chit that any corporation, body corporate in India can hope for. After all, it comes from the premier organization that determines issues concerning corporate governance, which is SEBI.”
He added that the order has “massive ramifications, both from a legal perspective and also from a market perspective,” predicting a positive impact on Adani stocks.
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