Mumbai: The Securities and Exchange Board of India (Sebi) on Thursday cleared the Adani Group and its Chairman Gautam Adani of allegations made by US-based short-seller Hindenburg Research regarding fund routing to conceal related party transactions.

In two separate orders, Sebi said it found no violations by the conglomerate. The regulator noted that the transactions in question, carried out with unrelated parties, did not fall under the definition of related party dealings at the time. The scope of the term was broadened only after a 2021 amendment.

Sebi further observed that the loans had been repaid with interest, no funds were siphoned off, and there was no evidence of fraud or unfair trade practices. Consequently, all proceedings against the Adani Group have been closed.

Hindenburg, in its January 2021 report, had alleged that three entities — Adicorp Enterprises, Milestone Tradelinks and Rehvar Infrastructure — were used as conduits to move money between Adani group companies. It claimed the arrangement enabled the group to avoid disclosure norms on related party transactions and potentially mislead investors.

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The regulator’s latest order brings closure to one of the key allegations raised by Hindenburg in its high-profile report on the Adani Group.

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