‘Owe National Apology’: Gautam Adani Slams Hindenburg’s Claims After SEBI Clean Chit

Adani Group Chairman Gautam Adani on Thursday demanded a “national apology” from those who spread the “false narratives” of Hindenburg Research.

This comes after the Securities and Exchange Board of India (SEBI) gave a clean chit to the Adani Group regarding their “baseless” allegations of violating disclosure norms or constituting fraudulent practices.

In a post on X, Gautam Adani emphasised the group’s commitment to transparency and integrity, expressing empathy for investors who lost money due to the report.

“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. 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,” he posted on X.

The US-based short-seller had alleged fund routing to conceal related-party transactions, sparking significant market volatility and impacting Adani Group’s market value. The clean chit brings significant relief to the Adani Group, ending months of scrutiny.

“Our commitment to India’s institutions, to India’s people and to nation building remains unwavering. Satyamev Jayate! JAI HIND!” Adani Group Chairman added on X.

The market regulator on Thursday refuted the allegations made by US Short seller Hindenburg against the Adani Group. SEBI concluded that there is no violation of the listing agreement or SEBI Listing Obligations and Disclosure Requirements (LODR), and the impugned transactions do not qualify as “related party transactions”.

According to SEBI, “Reading of Listing Agreement and SEBI (LODR) Regulations reveals that transactions between a listed company with unrelated party is not covered within the definition of “related party transactions” as it existed during the time when impugned transactions took place, though included specifically after the 2021 amendment.

SEBI said that the Supreme Court had rejected the plea of the petitioner and held that procedure followed in arriving at the current shape of regulations is not tainted with any illegality. The Supreme Court also held that no valid grounds have been raised to direct SEBI to revoke its amendments to the SEBI(LODR) Regulations.

SEBI said that there is no violation of Section 12A of the SEBI Act and SEBI-Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) (PFUTP) Regulations as alleged. It concluded that no fraud, misrepresentation, or siphoning of funds was proven and all funds were returned with interest. Thus, all allegations in Show cause Notice not established.

SEBI concluded that no liability or penalties were imposed on Adani Group entities or individuals and the proceedings were disposed of without directions.

In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company’s stock price. The group at the time had rubbished these claims.

The Adani group has repeatedly denied all the accusations in the Hindenburg Research report. While addressing the Annual General Meeting (AGM) of Adani Enterprises at the time, Group Chairman Gautam Adani had said they were “faced with baseless accusations made by a foreign short seller, that questioned our decades of hard work.” (ANI)