The long-running saga between the Adani Group and U.S. short-seller Hindenburg Research has reached a major turning point. On Thursday, September 18, 2025, India’s markets regulator, the Securities and Exchange Board of India (SEBI), gave a comprehensive clean chit to billionaire Gautam Adani and his group companies, effectively dismissing the allegations of stock manipulation and fraud.
After a thorough investigation, SEBI found no evidence to support Hindenburg’s claims. In its final orders, the regulator concluded that the allegations of stock manipulation, fraud, and violations of related-party transaction rules could not be established. A key finding was that the transactions flagged by Hindenburg were genuine business dealings, and under the regulatory framework that existed at the time, they did not legally qualify as “related party transactions.” SEBI also noted that all loans in question were fully repaid with interest and that there was no evidence of funds being siphoned off. As a result, SEBI found no basis for assigning liability or imposing any penalties on Adani entities or executives.
In response, Gautam Adani took to social media, expressing that SEBI’s exhaustive investigation “reaffirmed what we have always maintained, that the Hindenburg claims were baseless.” He called the report “fraudulent and motivated” and said those who spread the false narrative “owe the nation an apology.” This latest news has sent a wave of relief through the Adani Group, with their shares expected to see a further rally and renewed investor confidence.
“We deeply feel the pain of the investors who lost money because of this fraudulent and motivated report. Those who spread false narratives owe the nation an apology,” – Gautam Adani
This all started back in January 2023, when Hindenburg Research, an American firm specializing in activist short-selling, published a report titled “Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History,” made several serious claims. The most damaging allegation was that the Adani Group had engaged in a “brazen stock manipulation and accounting fraud scheme.” Hindenburg claimed that Vinod Adani, Gautam Adani’s brother, controlled a vast network of offshore shell entities in tax havens like Mauritius. The report detailed how these entities, including Adicorp Enterprises Pvt. Ltd., Milestone Tradelinks Pvt. Ltd., and Rehvar Infrastructure Pvt. Ltd., were allegedly used as conduits to route funds into and out of Adani’s publicly listed companies.
The claims were detailed and specific, with Hindenburg stating they had evidence of billions of dollars being moved surreptitiously to inflate stock prices. The immediate market reaction was severe, with Adani Group companies losing over $150 billion in market value in the weeks following the report’s release.
