Adani Group Conclusively Vindicated: Mahesh Jethmalani On SEBI Clean Chit

"There's an attempt to undermine our stock markets," Mr Jethmalani stated.

New Delhi:

Following SEBI's clean chit regarding allegations made by short seller Hindenburg Research, the Adani Group has been conclusively vindicated, according to senior advocate and Rajya Sabha MP Mahesh Jethmalani.

In an exclusive conversation with NDTV Profit on Thursday, Mr Jethmalani emphasized that these allegations weren't solely targeting Adani but represented an attempt to "undermine our stock markets".

Hindenburg Research had claimed in January 2023 that the Adani Group utilized three companies - Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure - to channel money between Adani group firms.

SEBI presented its conclusions in two orders on Thursday, finding no violations and noting that the transactions occurred when such dealings with unrelated parties weren't classified as "related party dealings" - a definition that was subsequently revised.

Reiterating this point, Mr Jethmalani said, "The Supreme Court had only left one outstanding investigation, which SEBI said they were still probing, concerning potential related third party transactions. People alleged that Adani group companies were funded through conduit companies as related party transactions. That's been definitively laid to rest now. The Adanis stand completely vindicated without any stain whatsoever."

"Furthermore, the shoe is on the other foot, as I believe Hindenburg and those who orchestrated this entire transaction need to be examined," he added.

Addressing critics who suggested SEBI's investigation was too lengthy, he explained that unraveling such transactions requires time.

"If matters are resolved quickly, criticism follows. If matters take longer, they're also criticized... Arguing about duration doesn't address the main allegations against any group," he stated.

'Vested Interests'

The senior lawyer characterized these allegations and similar ones as attacks on the health of the Indian economy.

"Vested interests in this country always find something to publicize - either for publicity, blackmail, or short selling. That's part of an open market economy. But the solution is pursuing those making false allegations. Significant investor losses occurred in this company. There's an attempt to undermine our stock markets. This wasn't merely an Adani hit. Indirectly, it attacked both investors and the stock market generally, thereby threatening the Indian economy's health. That was the entire scheme, which is pernicious and warrants investigation," he emphasized.

The former MP alleged that foreign forces were involved in the attack, noting that Hindenburg lacks a strong track record and has hidden backers.

"Hindenburg was an exaggerated entity that merely conducted some research analysis. Much of their analysis was derived from questions raised in Parliament. They essentially plagiarized information already in the public domain that was never taken seriously," he remarked.

'Investors Hit'

The advocate suggested that SEBI's clean chit sends a global message that Indian markets are resilient, regulatory agencies function effectively, and India's economy is substantial enough to withstand such "misadventures".

"This was a coordinated attempt to destabilize a particular corporate entity without considering the consequences of harming numerous small investors. It wasn't just foreign forces; there was an echo chamber here too. This must be firmly exposed. Various individuals were hostile not just toward the Adani group but toward India's economy as well," he alleged.