5 Adani group companies settle Sebi proceedings for ₹1.51CR.

Sebi had sent show-cause notices to the companies in February 2024 for alleged lapses in disclosure of certain related-party transactions, highlighted in the Hindenburg report

Five companies of the coal-to-port conglomerate Adani group have settled adjudication proceedings with market regulator Securities and Exchange Board of India (Sebi) for a cumulative amount of Rs 1.51 crore, in matters involving alleged lapses in disclosure of related-party transactions.

The case originated from Sebi’s examination of allegations of undisclosed related-party transactions (RPTs) and corporate governance lapses flagged in a report by the now-defunct Hindenburg Research.

Under the settlement terms recommended by Sebi’s High Powered Advisory Committee and accepted by the panel of whole-time members, Adani Enterprises paid Rs 76.05 lakh, while Adani Green Energy paid Rs 45.50 lakh. Adani Total Gas, AWL Agri Business and Adani Energy Solutions each paid Rs 9.75 lakh.

Sebi had issued show-cause notices to the companies in February 2024, alleging that Adani Enterprises had failed to disclose related-party transactions between its subsidiary Adani Estates and Vakoder Investment in its FY13 annual report as per the applicable accounting standard, in violation of the erstwhile listing agreement.

Separately, the notice alleged that audit and limited review reports of several group companies for various quarters between 2015 and 2021 were signed by chartered accountancy firms — Dharmesh Parikh & Co LLP and Shah Dhandharia & Co LLP — without a valid peer review certificate, in violation of Sebi’s listing obligations and disclosure requirement norms.

“In view of the acceptance of the settlement terms and the receipt of settlement amount by Sebi, the instant adjudication proceedings initiated against the Applicants vide SCN dated February 15, 2024 is disposed of in terms of section 15JB of the SEBI Act and section 23JA of the SCRA read with regulation 23(1) of the Settlement Regulations on the basis of the settlement terms,” the settlement order dated September 22 noted.

Earlier this month, Adani Ports and Special Economic Zone (APSEZ) Managing Director Karan Adani and Chief Financial Officer B Ravi settled adjudication proceedings with the market regulator in a matter involving PMC Projects. Under the settlement mechanism, both paid Rs 13.65 lakh each, following which the proceedings were disposed of.

The settlement order on September 10 had stated that the investigations were in respect of the banking transactions and inter-corporate security deposits among PMC Projects (India), APSEZ and its subsidiaries.

Last year in September, Sebi had closed proceedings against Adani group companies, group Chairman Gautam Adani and associated entities facing accusations of fund diversion, violations of related-party transaction (RPT) norms and fraud.

In two separate orders, the regulator had exculpated the group in the matter of allegations made by short-seller Hindenburg Research in 2023, effectively bringing down the curtains on the saga that had triggered a ~Rs 12 trillion market-cap rout at the business group.

The regulator held that transactions between Adani group companies and companies flagged by Hindenburg, including Adicorp Enterprises, Milestone Tradelinks and Rehvar Infrastructure, could not be called RPTs.

As a result, Sebi held that other potential violations of regulatory norms around disclosures or fraud don’t stand.

Alay Razvi, managing partner, Accord Juris, believes that the settlements mark another step in the group’s gradual exit from the Hindenburg-related regulatory overhang.

“After Sebi’s 2025 orders dismissing key market-manipulation allegations, this settlement brings closure to certain legacy enforcement actions without any finding of fraud. For investors, it signals a shift from crisis management to compliance consolidation, even as governance expectations for large conglomerates remain high,” he said.

Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

SEBI registered research analyst

Stock market

Accurate intraday tips

Call or whatsapp: +91 9924987385 / +91 7096190322

www.moneywealth.co.in