SEBI settles Hindenburg-linked proceedings against five Adani group firms

The proceedings related to the alleged non-disclosure of certain RPTs and instances where audit or limited review reports were signed by audit firms without holding a valid peer review certificate.

Settlement follows proceedings over alleged RPT disclosure lapses and audit reports signed without valid peer-review certificates

New Delhi, September 22, 2026: Markets regulator Sebi on Tuesday settled adjudication proceedings against five Adani group companies over alleged violations related to the disclosure of related-party transactions and audit as well as limited review reports, with the firms collectively paying Rs 1.5 crore as a settlement amount.The proceedings stemmed from Sebi's examination into allegations and corporate governance issues highlighted in a January 2023 report of now-closed US short-selling firm Hindenburg Research, including possible violations of listing regulations and the erstwhile listing agreement.The five companies are Adani Enterprises Ltd, Adani Total Gas Ltd, AWL Agri Business Ltd (formerly Adani Wilmar Ltd), Adani Green Energy Ltd and Adani Energy Solutions Ltd (formerly Adani Transmission Ltd), according to Sebi's settlement order.Settlement AmountsUnder the settlement terms, 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 paid Rs 9.75 lakh each.According to the settlement order, the proceedings related to the alleged non-disclosure of certain related-party transactions and instances where audit or limited review reports were signed by audit firms without holding a valid peer review certificate.Sebi had issued a show-cause notice to the companies in February 2024, asking them to explain why an inquiry should not be held and penalties imposed for the alleged violations.Allegations Against Adani EnterprisesIt was alleged that Adani Enterprises Ltd (AEL) failed to disclose certain related-party transactions (RPTs) between its subsidiary Adani Estates Private Ltd and Vakoder Investment Ltd, a related party of AEL, in its FY13 annual report as required under the applicable accounting standards.It was also alleged that AEL's audit report for FY15 and the limited review report for the quarter ended June 2015 were signed by an audit firm, which did not hold a valid peer review certificate. Further, AEL's limited review reports for the quarters ended June 2017, September 2017 and December 2021 were signed by the audit firm, which did not hold a valid peer review certificate.Proceedings Against Other FirmsSimilarly, Adani Total Gas, AWL Agri Business, Adani Green Energy and Adani Energy Solutions faced proceedings pertaining to limited-review or audit reports signed by an audit firm without a valid peer review certificate.Pending adjudication proceedings, the companies subsequently proposed to settle the proceedings without admitting or denying the findings of fact and conclusions of law.The settlement terms were recommended by Sebi's High Powered Advisory Committee in June 2026 and accepted by the Panel of Whole Time Members on August 13. Sebi subsequently received the settlement amounts from the applicants, the order said.Earlier Hindenburg AllegationsIn September 2025, Sebi cleared billionaire Gautam Adani and his group of stock manipulation allegations made by Hindenburg Research, after it did not find any evidence that the conglomerate used related parties to route funds into its listed companies.Also Watch: Iris Global Services Opens The Door To An IPO, ₹200-Crore Fresh Issue Planned After SEBI FilingHindenburg, which has since shut down, in January 2023 published a damning report against the Adani Group, alleging that Adicorp Enterprises Pvt Ltd, Milestone Tradelinks Pvt Ltd, and Rehvar Infrastructure Pvt Ltd were used as a conduit to route funds from various Adani Group companies to fund publicly listed Adani Power Ltd and Adani Enterprises Ltd.(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)