In a major win for billionaire Gautam Adani market regulator SEBI on Thursday gave a clean chit to the Adani Group in the allegations made against the conglomerate by US-based short-seller Hindenburg Research stating that no evidence was found that the group used related parties to route funds into its listed companies.
Why SEBI acquitted Adani Group and Gautam Adani?
According to SEBI no violations were found in Adani Groups transactions unrelated parties as such transactions did not qualify as related party dealings under the expanded definition following 2021 amendment. The regulator noted that the Adani Group repaid the loans with interest and no funds were siphoned off hence there was no fraud or unfair trade practice.

The market regulator has dropped all proceedings against the Adani Group and its Chairman Gautam Adani following two separate orders that cleared the conglomerate of all charges levelled by the US short-seller.
How Gautam Adani reacted to SEBIs ruling?
Meanwhile following the SEBI clean chit Gautam Adani demanded an apology from those who spread false narratives against him and his company stating that the regulators decision reaffirms Adani Groups stand that the Hindenburg claims were baseless.

In a post on X Adani said those who used the fraudulent and motivated Hindenburg Research report to spread false narratives owe an apology to the country. After an exhaustive investigation Sebi has reaffirmed what we have always maintained that the Hindenburg claims were baseless. Transparency and integrity have always defined the Adani Group he wrote.

We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology. Our commitment to Indias institutions to Indias people and to nation building remains unwavering. Adani added.

What were the allegations?

In January 2023 Hindenburg Research had published a bombshell report targeting the Adani Group and its Chairman Gautam Adani. The report alleged that the group used used three companies -- Adicorp Enterprises Milestone Tradelinks and Rehvar Infrastructure -- as conduits to route money between Adani group firms.

It claimed that this helped Gautam Adani to circumvent market rules on related party transactions possibly misleading investors.

The Hindenburg report had triggered a  stock market rout of Adani group companies who at their lowest point lost a whopping $150 billion in valuation.

(With inputs from agencies)