In a significant legal and regulatory victory for the Adani Group, the Securities and Exchange Board of India (SEBI) has officially cleared the conglomerate of all major allegations raised by Hindenburg Research.
The Supreme Court of India has further solidified this closure by dismissing recent applications that sought to reopen the probe, effectively ending a judicial battle that has lasted nearly three years.
The Supreme Court upheld SEBI's investigation, stating no prima facie evidence of regulatory failure.
Verdict Key Takeaways
1. SEBI Observations: No Evidence of Fraud
SEBI submitted its final observations stating that allegations regarding stock manipulation and non-disclosure of Related-Party Transactions (RPT) could not be established. The regulator found that flagged transactions were genuine business dealings compliant with existing Listing Obligations (LODR) norms.
"The alleged transactions were found to be in compliance with the then-existing regulatory framework," SEBI confirmed in its final report.
2. Supreme Court Refuses to Reopen Case
On January 27, 2025, a bench led by Justice JB Pardiwala dismissed a fresh application seeking to direct SEBI to disclose more findings. The court maintained that:
- Third-party reports (Hindenburg/OCCRP) are not "conclusive proof" to doubt a state regulator.
- There is no prima facie evidence of "regulatory failure" by SEBI.
- No grounds exist to transfer the probe to an SIT or the CBI.
3. Global Outlook: Management of US Legal Battles
While Indian legal matters reach a close, the group is managing a civil lawsuit by the US SEC regarding disclosures by Adani Green Energy. Gautam Adani has hired prominent Wall Street lawyer Robert Giuffra Jr. for the defense.
Note: The group has categorically denied all allegations of bribery or fraud in international markets as well.
4. Impact on Investors and Future Plans
The "atmosphere of doubt" surrounding one of India's largest infrastructure players is clearing. Adani Group stocks have shown significant recovery since the initial market crash of 2023.
Experts suggest the focus will now shift to massive expansion in green energy, ports, and airports, providing long-term certainty for retail investors.