Adani Companies Pay ₹1.51 Crore to Resolve SEBI Cases Related to Disclosure Violations

Four Adani Group companies have made payments of ₹1.51 crore to resolve SEBI-initiated proceedings against them concerning alleged disclosure and audit-related violations. 

These Adani-linked firms are Adani Enterprises – which is the group’s flagship listed company – AWL Agri Business (formerly Adani Wilmar) and two others included in the order issued by SEBI. 

According to the market regulator, Adani Enterprises was accused of failing to disclose the details of a related-party transaction in its annual report for FY13. 

While the rest of the three firms were accused of filing some audit/review reports signed by firms that didn’t have a valid peer review certificate. 

In February 2024, SEBI had issued show-cause notices to these companies. Now these matters have been resolved without the companies agreeing or disagreeing with the allegations of the regulator. 

These were part of a total of 24 cases investigated by the regulator post the issuance of the report of Hindenburg Research against Gautam Adani-led conglomerate in January 2023. 

Hindenburg claimed that the conglomerate had manipulated stock prices using tax havens overseas. 

Over the past year, SEBI has allowed settlements in several cases arising from that wider review. Those matters have included disclosure violations, alleged insider trading and audit-compliance issues. 

The regulator has also separately closed proceedings in a case examining whether inter-company loans had been structured in a way that concealed related-party transactions. 

Not all of the regulatory matters linked to the broader investigation have been concluded. 

Reuters reported that probes are still pending into whether certain offshore investors were used to get around Indian rules requiring at least 25% public shareholding, as well as whether there was manipulation in trading of Adani Group shares. 

An Adani spokesperson did not immediately respond to Reuters’ request for comment on whether the latest settlement closes all remaining litigation. 

The ₹1.51 crore payment settles the specific disclosure and audit-related proceedings covered by SEBI’s latest order, while other investigations arising from the broader review remain open.