"Best Quality Clean Chit": Lawyer Jai Anant Dehadrai On SEBI Verdict For Adani Group

Lawyer Jai Anant Dehadrai has described SEBI's verdict clearing the Adani Group as "the best quality clean chit" any Indian corporation could hope for, during an exclusive interview with NDTV.

The Securities and Exchange Board of India (SEBI) today dismissed all allegations against Adani Group Chairman Gautam Adani and his companies that were previously made by US short seller Hindenburg Research. According to Dehadrai, this clearance carries "massive ramifications" from both legal and market perspectives.

The Supreme Court advocate suggested that SEBI's verdict holds even greater significance than the Supreme Court's earlier ruling in favor of the Adani Group, citing SEBI's specialized expertise and tools "to conduct a very deep inquiry" into such matters.

SEBI's investigation concluded there were no violations by the Adani Group, confirming that all loans were repaid, funds were used appropriately, and no fraud or unfair trade practices occurred. Consequently, all proceedings against the conglomerate have been dropped.

The market regulator noted that the transactions in question took place when such dealings with unrelated parties were not classified as related party transactions under the prevailing regulations, which were modified later.

Dehadrai emphasized that this verdict "puts to rest the years of unfounded allegations that Hindenburg had levelled at the Adani group." He questioned the motives behind Hindenburg's actions, asking whether they were "trying to essentially profit off of the misery of Indian investors" or if there was "a larger motive to destabilize the Indian economy."

Following the verdict, Gautam Adani posted on social media that SEBI's findings confirmed what they "have always maintained, that the Hindenburg claims were baseless." He expressed sympathy for investors who lost money due to what he termed a "fraudulent" report.

The controversy began in January 2023 when Hindenburg Research alleged that the Adani Group had used three companies to improperly route funds between its entities. The Adani Group firmly rejected these claims, describing them as "malicious" and "manipulative" interpretations of public information.

Dehadrai asserted that short sellers worldwide "are no good Samaritans" and are solely motivated by profit rather than helping investors.

Earlier this year, the Supreme Court supported SEBI's investigation approach and declined requests to transfer the case to a Special Investigation Team. In July, the court dismissed a petition seeking a review of its January 2024 verdict and rejected another petition requesting SEBI to submit a conclusive report on the Hindenburg allegations.