SEBI settles Hindenburg-linked disclosure cases against five Adani companies for ₹1.5 crore

The Securities and Exchange Board of India (SEBI) has settled adjudication proceedings against five Adani Group companies for a cumulative amount of about ₹1.5 crore in cases arising from its examination of allegations highlighted in the Hindenburg Research report.

The companies are Adani Enterprises Limited, Adani Total Gas Limited, AWL Agri Business Limited (formerly Adani Wilmar Limited), Adani Green Energy Limited and Adani Energy Solutions Limited (formerly Adani Transmission Limited).

SEBI examined allegations concerning disclosure of alleged related-party transactions (RPTs) and corporate governance issues flagged in the Hindenburg report, and possible violations of the SEBI Listing Obligations and Disclosure Requirements Regulations and the erstwhile Equity Listing Agreement.

The examination covered seven Adani Group companies, including Adani Ports and Special Economic Zone Limited and Adani Power Limited.

Based on its findings, SEBI initiated adjudication proceedings against the five companies for alleged violations relating to disclosures and financial statements.

In the case of Adani Enterprises, SEBI alleged that related-party transactions between its subsidiary Adani Estates Private Limited and Vakoder Investment Limited, described as a related party of Adani Enterprises, were not disclosed in the company's annual report for financial year 2012-13 in accordance with the applicable accounting standard.

SEBI also alleged that certain audit and limited review reports of Adani Enterprises were signed by Dharmesh Parikh & Co LLP and Shah Dhandharia & Co LLP when the firms did not hold valid Peer Review Certificates.

Similar allegations concerning reports signed without valid peer review certificates were made against Adani Total Gas, AWL Agri Business, Adani Green Energy and Adani Energy Solutions.

While the adjudication proceedings were pending, the five companies sought settlement without admitting or denying the findings of fact and conclusions of law under the SEBI Settlement Proceedings Regulations, 2018.

Following meetings with SEBI's Internal Committee, revised settlement terms were proposed in May 2026.

The High Powered Advisory Committee subsequently recommended settlement payments of ₹76.05 lakh by Adani Enterprises, ₹45.50 lakh by Adani Green Energy and ₹9.75 lakh each by Adani Total Gas, AWL Agri Business and Adani Energy Solutions.

The recommendations were accepted by SEBI's Panel of Whole Time Members on August 13. The companies informed SEBI on September 5 that the settlement amounts had been remitted, and SEBI confirmed receipt of the money.

Accordingly, Adjudicating Officer Jai Sebastian disposed of the proceedings initiated through a February 2024 show-cause notice on the basis of the settlement terms.

The order, passed on September 22, makes clear that SEBI can restore or initiate proceedings if any representation made during settlement is later found to be untrue, if the applicants breach their undertakings or waivers, or if a discrepancy is found in arriving at the settlement terms.

[Read Order]