In a significant move, the Securities and Exchange Board of India (SEBI) dismissed allegations of financial misconduct against the Adani Group on Thursday.
SEBI ruled that transactions through Adicorp Enterprises Pvt Ltd, Milestone Tradelinks Pvt Ltd, and Rehvar Infrastructure Pvt Ltd did not violate related-party disclosure rules or constitute fraudulent practices.
Whole-time member Kamlesh C Varshney issued the orders, giving the Adani conglomerate a clean chit in the high-profile probe triggered by Hindenburg Research’s 2023 report. The regulator found that the transactions were genuine business dealings and complied with the applicable legal framework.
On Hindenburg’s allegations against Adani group companies, the Securities and Exchange Board of India (SEBI) concludes that there is no violation of the listing agreement or SEBI (LODR), and the impugned transactions do not qualify as “related party transactions” for the reasons… pic.twitter.com/gmjaDHbnjP
— ANI (@ANI) September 18, 2025
SEBI Finds No Manipulation or Fraud
SEBI concluded that the transactions under scrutiny were not manipulative or fraudulent.
The regulator noted that:
– no funds were siphoned or misused;
– all money was returned with interest before the investigation began;
– the transactions were not classified as related-party deals.
The show-cause notice lacked evidence to prove fraud under the Listing Obligations and Disclosure Requirements (LODR) Regulations. The regulator emphasized that the transactions represented legitimate business activity and did not violate SEBI rules, dismissing all allegations of unfair trade practices and financial misrepresentation.
Hindenburg Allegations and SEBI Investigation
Hindenburg Research had claimed that Adicorp, Milestone Tradelinks, and Rehvar Infrastructure acted as conduits to move billions of rupees between Adani companies. The report alleged that Adicorp Enterprises, with minimal financial capacity, received loans exceeding Rs 1,200 crore from Adani Ports and Special Economic Zone Ltd (APSEZ) and routed them largely to Adani Power Ltd (APL).
Similar allegations targeted Milestone Tradelinks and Rehvar Infrastructure. Critics argued these transactions concealed related-party dealings and inflated financial statements, causing a major sell-off in Adani stocks. SEBI’s investigation, however, found no evidence supporting these claims.
SEBI Rules on Transactions and Compliance
The regulator determined that the transactions did not violate LODR regulations, as they involved unrelated parties before the 2021 amendment. SEBI also found no violations under Section 12A of the SEBI Act or Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
The investigation confirmed that all funds were returned with interest, no misrepresentation or siphoning occurred, and the allegations in the show-cause notice were unproven. SEBI imposed no penalties or liabilities on any Adani Group entity or individual and closed the proceedings without further directions.
SEBI officially cleared Adani Group of all allegations raised by Hindenburg Research. The regulator concluded that the transactions were genuine business operations, not fraudulent or in violation of related-party disclosure norms.
The ruling removes regulatory uncertainty and reinforces the legitimacy of the group’s financial dealings, ending one of the most closely watched corporate investigations in India.
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Swastika Sruti is a Senior Sub Editor at NewsX Digital with 5 years of experience shaping stories that matter. She loves tracking politics- national and global trends, and never misses a chance to dig deeper into policies and developments. Passionate about what’s happening around us, she brings sharp insight and clarity to every piece she works on. When not curating news, she’s busy exploring what’s next in the world of public interest. You can reach her at [swastika.newsx@gmail.com]
