New Delhi: Market regulator SEBI on Thursday cleared the Adani Group and its chairman Gautam Adani of allegations of money laundering made by US-based Hindenburg Research. The charges related to the alleged use of three entities to conceal related party transactions.
In two separate orders, Sebi said it did not find any violations. The regulator noted that the transactions in question were with unrelated parties at that time and did not qualify as related party deals, as the definition was expanded only after the 2021 amendment.
The orders further mentioned that the loans were repaid with interest, no funds were siphoned off, and there was no evidence of fraudulent or unfair trade practices. Consequently, all proceedings against the Adani Group have been quashed.
In January 2021, Hindenburg had alleged that the Adani Group used Adicorp Enterprises, Milestone Tradelinks, and Rehover Infrastructure as conduits for money laundering between its firms, helping the conglomerate bypass related party transaction rules and potentially misleading investors.
