INTRODUCTION
On September 18 2025, Securities Exchange Board of India (SEBI) gave complete vindication to Business Tycoon Gautham Adani and his linked entities in the allegations raised by the US base company HindenBurg Research. The allegations were on the fund diversion, violations of related – party transactions ( RPTs) and fraud.
ALLEGATIONS BY HINDEN BURG
The allegations against the Adani Group where the group diverted the funds through intermediary firms. HindenBurg alleged that it was non – disclosed related party dealings. The firms which alleged fund transactions took place were Milestone Tradelink Pvt Ltd, Rehvar Private Limited, Adani Infra Ltd. As per HindenBurg they have done this transaction to evade regulatory reportings and audit checks also to conceal the reality and misrepresent the investors.
FINDINGS BY SEBI
As per the findings by the SEBI, no such illegal funding takes place. The transactions done by the Adani Group were genuine. According to the rules the SEBI pointed out that the alleged transactions will not fall under related party transactions. Also there is no evidence that shows these transactions do not mislead the investors. As these loan transactions complied with all the laws and those transactions were genuine SEBI concluded the case without any penalty.
CONCLUSION
After all the investigations and enquiry conducted by the SEBI they have not found anything illegal. Hence they declared Adani group and their entities not guilty of wrong doing as alleged by the Hinden Burg. SEBI declared that there is no misconduct hence there is no penalty. This decision by the authority shows that through intermediary entities were lawful and properly documented.
AUTHOR DETAILS:
Aswathy S Menon, a law graduate from Mar Gregorios College of Law, Thiruvananthapuram, and Practicing as a lawyer at High Court of Kerala with over two years of experience in litigation, compliance, and legal research. She has contributed to legal content writing and worked on civil, criminal, and corporate matters, with particular interests in corporate governance, contract law, and dispute resolution.