Adani gets Supreme Court relief on further probe over Hindenburg report

The decision by the Supreme Court of India that the Adani Group is exempt from investigations beyond the current investigation by the market regulator is a tremendous relief for the conglomerate, which has been severely impacted by the allegations of wrongdoing by a US-based short seller.

The Securities and Exchange Board of India (SEBI) initiated an investigation against the Adani business, led by billionaire Gautam Adani, after allegations made by Hindenburg Report Adani in January 2023 about stock manipulation and inappropriate use of tax havens.

Even though the Adani Group denied it, Hindenburg’s narrative caused a $150 billion decline in the company’s stock price.

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Despite the support of investors and bankers, the Adani Group has been under fire for its business dealings and public perception due to the Hindenburg Report Adani and regulatory investigations.

On Wednesday(3rd Jan 2024), the Court decided against shifting the investigation because “the facts of this case do not warrant” it, even though it had the power to do so. Public interest litigants had asked the Supreme Court to form a special investigation team to look into the matter, and the Court granted their request.

The verdict means the Adani Group is out of legal and regulatory turbulence, at least for the time being at least, according to the SEBI investigation.

Under the supervision of the highest Court overseeing the SEBI investigation, the country’s disclosure requirements regarding offshore funds were deemed to be adequate.

Adani Group Complies with all rules and regulations, but Hindenburg said that the company was circumventing some SEBI limits by using its overseas shareholders.

In his post-Supreme Court win speech on X (formerly Twitter), Gautam Adani said that the Group’s “contribution to India’s growth story will continue” and noted that the verdict proves truth has triumphed.

“Global investors will have more confidence in investing in the shares of the company post this verdict,” said Deven Choksey, managing director of KRChoksey Shares and Securities Pvt Ltd.

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The agency had previously assured the Supreme Court that its response would be conditional on the results of its investigations. Three months were allowed to SEBI by the Court on Wednesday (3rd Jan’24) to conclude its investigations.

Another point is that the Supreme Court has already said that it would not be messing with the regulations that are currently in place to safeguard foreign investors in Indian companies. In June, SEBI relaxed such regulations to encourage more thorough disclosures in an attempt to clarify opaque company structures.

Adani is required by Indian law to have 25% of its shares held by public shareholders in order to prevent price manipulation. However, Hindenburg Report Adani said that Adani had used its offshore shareholders to avoid this requirement. The Adani Group has said that it abides by all laws and rules.

Supreme Court Involvement

The most recent decision from the Supreme Court provides some respite to the Adani Group, even though investigations are ongoing. Adani has an opportunity to present its case and dispute the assertions made in the Hindenburg report since the Court has momentarily suspended the probe.

In granting relief, the Supreme Court demonstrated the commitment of the judicial system to ensuring fair and unbiased investigations. The ruling adds weight to the argument that allegations must be carefully investigated to maintain the investigation’s credibility.

Operations Now and in the Future of the Company

Despite the issue, the Adani Group’s operations and strategic goals in several sectors have continued. The company is well-established in the logistics industry as well as the energy and infrastructure sectors. Via its foray into renewable energy, especially via Adani Green Energy, Adani has solidified its position as a key player in India’s transition towards sustainable practices. Adani may now be free to focus on its present and future projects after the Supreme Court granted it another reprieve from the threat of an intensified inquiry.

Transparency and Corporate Leadership

One point raised in the discussion around the Hindenburg Report Adani is the need for large firms to make transparency and good corporate governance their top priorities. As they expand their activities globally and have a greater impact on economic landscapes, companies must be honest to earn trust and credibility. Because of this episode, the Adani Group’s and other big companies’ corporate governance practises will be scrutinized more closely.


When the Supreme Court ruled in favour of the Adani Group in the Hindenburg report case, it marked a significant turning point in the company’s response to the allegations. While the principles of fair investigation are reinforced, Adani is given the opportunity to present its case. How the Adani Group deals with the issue and its commitment to transparency as the legal processes develop will greatly impact its future and its capacity to recover the confidence of the public and its stakeholders.

Upholding ethical standards, effective corporate governance, and transparency are becoming more important in today’s interconnected and watched business environment. This case further emphasizes these wider challenges and the responsibilities that huge firms have in this regard.

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