In a significant development, the Securities and Exchange Board of India (SEBI) on Thursday gave a clean chit to the Adani Group, dismissing allegations of stock manipulation made by US-based short-seller Hindenburg Research against Gautam Adani and his companies, including Adani Enterprises, Adani Ports, and Adani Power.
Background of the Case
In January 2023, Hindenburg Research accused the Adani Group of routing funds through three companies—Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure—in order to bypass rules on related-party transactions. The report claimed these arrangements misled investors and facilitated stock price manipulation.
SEBI’s Findings
In two detailed orders, SEBI ruled out any wrongdoing by the Adani Group. The regulator noted that at the time, transactions with unrelated parties did not fall under the ambit of related-party transactions—a definition that was broadened only after a 2021 amendment.
SEBI also observed that the loans in question were repaid with interest, with no evidence of siphoning of funds or fraudulent practices. Accordingly, all proceedings against the group have been dropped.
“Having considered the matter holistically, I find that the allegations made against the Noticees are not established. Consequently, the question of liability or penalty does not arise. I hereby dispose of the proceedings against the Noticees without any direction,” wrote Kamlesh C. Varshney, Whole-Time Member of SEBI, in his orders.
The orders formally cleared Adani Enterprises, Adani Ports & SEZ, Adani Power, along with Gautam Adani, Rajesh Adani, and three others of any alleged violations.
Hindenburg’s Report and Aftermath
Hindenburg Research, now disbanded, rose to prominence in India after releasing its 2023 report accusing the Adani Group of what it described as “the largest con in corporate history.” The allegations triggered a sharp decline in the group’s market value.
However, as the charges remained unproven, the Adani Group recovered most of its losses in the following months. The conglomerate consistently denied all allegations throughout the episode.
In January 2025, Hindenburg founder Nate Anderson announced the firm’s closure, stating that its operations would wind down after completing its pipeline of investigative reports. Beyond Adani, the short-seller also issued reports targeting former SEBI Chairperson Madhabi Puri Buch and her husband, among others.
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