Gautam Adani Demands 'National Apology for False Narratives' as SEBI Clears Adani Group of Hindenburg Claims

Gautam Adani reacted after SEBI cleared Adani Group of Hindenburg Research stock manipulation claims. He called the report fraudulent, expressed sympathy for investors and reaffirmed Group's commitment to transparency, integrity, and nation-building.

Adani Group Chairman Gautam Adani on Thursday demanded a ‘national apology’ from those who spread the “false narratives” propagated by Hindenburg Research. His statement followed the Securities and Exchange Board of India (SEBI) granting the Adani Group a clean chit, dismissing allegations that the group violated disclosure norms or engaged in fraudulent practices. In a post on X, Adani reaffirmed the group’s commitment to transparency and integrity while expressing empathy for investors who lost money due to the Hindenburg report. 

He wrote: “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 added that the group’s commitment to India’s institutions, people, and nation-building remains unwavering, concluding his statement with “Satyamev Jayate! JAI HIND!”

He expressed sympathy for investors who lost money due to the report, calling it “fraudulent and motivated” and said, “Those who spread false narratives owe the nation an apology.” Adani also reaffirmed the Group’s commitment to India’s institutions and nation-building, ending with “Satyamev Jayate! JAI HIND!”

SEBI clean chit to Adani Group

SEBI’s investigation dismissed allegations of stock manipulation, stating there was no violation of rules. The regulator found that transactions cited in the Hindenburg report did not qualify as 'related party transactions' and confirmed all loans were repaid with interest.

The US-based short-seller Hindenburg Research had alleged that the Adani Group used complex fund routing to conceal related-party transactions, which caused significant market volatility and affected the group’s market valuation. However, SEBI’s investigation found these claims baseless and confirmed that no violation of regulations occurred.

According to SEBI, the transactions cited by Hindenburg did not qualify as “related party transactions” under the laws in force at the time. While SEBI (Listing Obligations and Disclosure Requirements, or LODR) regulations were amended in 2021 to explicitly include certain transactions, the fund transfers in question predated this change. SEBI also noted that the Supreme Court had rejected a petition challenging these regulations, confirming that the regulatory amendments were legally valid and procedural compliance was intact.

The regulator further clarified that there was no violation of Section 12A of the SEBI Act or of the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations. No evidence of fraud, misrepresentation, or fund siphoning was found, and all funds involved in the transactions were returned with interest. As a result, SEBI imposed no penalties or liabilities on the Adani Group entities or individuals and concluded the proceedings without further directions.

Adani vs Hindenburg controversy

The controversy dates back to January 2023, when Hindenburg published its report alleging financial irregularities at the Adani Group, causing the company’s stock price to drop sharply. From the beginning, the group had strongly denied the accusations. At its Annual General Meeting (AGM), Gautam Adani emphasized that the allegations were baseless attacks by a foreign short seller that undermined the group’s decades of work.

The SEBI clean chit marks the end of months of scrutiny and brings significant relief to the Adani Group, reaffirming its standing in the Indian financial markets and clearing it of all Hindenburg claims.

(With ANI inputs)