Gautam Adani-led Adani Group on Monday in a release have welcomed the investigation, saying this represents a fair opportunity for everyone to be heard and for all issues to be addressed. The group said that the conglomerate is fully compliant with all laws, rules and regulations and are confident that truth will prevail.
“We are fully compliant with all laws, rules and regulations and are confident that truth will prevail. We are fully cooperating with SEBI and will continue to provide all our support and cooperation,” Adani Group said.
The Securities and Exchange Board of India (Sebi) is conducting an investigation into allegations made by US short-seller, Hindenburg Research, on January 25, 2023. The Supreme Court had on March 2 asked the Sebi to conclude within two months its probe into allegations levelled by US short-seller Hindenburg Research against Adani Group.
The capital markets regulator has not concluded any wrongdoing in its application to the country’s top court, seeking six more months to complete a probe into allegations against Adani Group, Gautam Adani said.
According to the release, it is pertinent to note that in the Sebi application filed before the Supreme Court, there are no conclusions of any alleged wrong-doing. The Sebi application only cites the allegations made in the short-sellers report, which are still under investigation.
“While we continue to remain focused on our business and growth, we would request the media to avoid needless speculation at this time and wait for the Sebi and the Expert Committee appointed by the Hon’ble Supreme Court to complete their work and submit their findings,” the group stated.
The Sebi was to file a status report on May 2 but on Saturday it made an application seeking an extension. Hindenburg in January accused Adani Group of accounting fraud and using a web of companies in tax havens to inflate revenue and stock prices, even as debt piled up.
The group has repeatedly denied all the allegations. The Sebi in its application filed on Saturday said that it needs six months to “arrive at conclusive finding” in the case of those where “prima facie violations have been found” and “to revalidate the analysis and arrive at conclusive finding” where “prima facie violations have not been found.”