The Securities and Exchange Board of India (SEBI) has recently completed adjudication proceedings against five firms under the Adani Group umbrella, culminating in a collective settlement sum of approximately ₹1.5 crore. This resolution emerges from an investigation spurred by allegations contained in the Hindenburg Research report. The companies involved in this settlement include 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’s Examination and Allegations
SEBI’s investigation focused on disclosures related to alleged related-party transactions (RPTs) and corporate governance concerns that were highlighted in the Hindenburg report. The inquiry scrutinized potential breaches of the SEBI Listing Obligations and Disclosure Requirements Regulations, along with the former Equity Listing Agreement. This examination extended across seven Adani Group entities, which also included Adani Ports and Special Economic Zone Limited and Adani Power Limited. However, the adjudication was specifically directed at five companies for purported violations concerning disclosures and financial reporting.
Specific Allegations Against Adani Enterprises
Among the allegations, SEBI pointed out that Adani Enterprises failed to disclose related-party transactions between its subsidiary, Adani Estates Private Limited, and Vakoder Investment Limited, detailed as a related party, in its 2012-13 annual report, contravening the relevant accounting standard. Additionally, SEBI alleged that certain audit and review reports for Adani Enterprises were signed by Dharmesh Parikh & Co LLP and Shah Dhandharia & Co LLP, even though these firms lacked valid Peer Review Certificates.
Broader Allegations and Settlement Approach
Similar allegations regarding the absence of valid peer review certificates for audit reports were leveled against Adani Total Gas, AWL Agri Business, Adani Green Energy, and Adani Energy Solutions. During the ongoing adjudication, these companies pursued a settlement under the SEBI Settlement Proceedings Regulations, 2018, without conceding to the findings of fact or conclusions of law.
Revised settlement terms were put forward in May 2026, after discussions with SEBI’s Internal Committee. The High Powered Advisory Committee 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, which were ratified by SEBI’s Panel of Whole Time Members on August 13.
Settlement Finalization
Following confirmation from the companies on September 5 regarding the remittance of settlement amounts, SEBI acknowledged receipt of the funds. Consequently, Adjudicating Officer Jai Sebastian concluded the proceedings initiated by a February 2024 show-cause notice, adhering to the settlement terms. The order, issued on September 22, retains SEBI’s authority to reinstate or initiate proceedings if any representations made during the settlement are deemed untruthful, if undertakings or waivers are violated, or if discrepancies in the settlement terms are identified.
