The settlement requires Adani Enterprises Ltd. (AEL) to pay ₹76.05 lakh, Adani Green Energy Ltd. (AGEL) ₹45.50 lakh, and the remaining three firms – Adani Total Gas Ltd., AWL Agri‑Business Ltd. and Adani Energy Solutions Ltd. – each to remit ₹9.75 lakh.
The adjudication stemmed from allegations made by the now‑defunct short‑seller research firm Hindenburg, which claimed the Adani companies had undisclosed related‑party transactions (RPTs) and had breached corporate‑governance and disclosure norms.
SEBI’s investigation found that AEL failed to disclose RPTs between its subsidiary Adani Estates Private Limited and Vakoder Investment Ltd. in the FY 2013 annual report, violating the Listing Obligations and Disclosure Requirements (LODR) and specific clauses of its listing agreement. The other four companies were also found to have breached LODR provisions, sections of the SEBI Act and the bye‑laws of the NSE and BSE.
Additional violations included non‑peer‑review of audit reports by Adani Total Gas Ltd., AWL Agri‑Business Ltd. and Adani Green Energy Ltd., while Adani Energy Solutions Ltd. breached NSE and BSE bye‑law provisions alongside its listing agreement clauses.
Prior to settlement, SEBI issued show‑cause notices asking the firms to explain why penalties should not be imposed. The companies chose to settle without admitting or denying the allegations, following settlement terms recommended by SEBI’s High‑Powered Advisory Committee. With the receipt of the settlement amounts, SEBI declared the adjudication proceedings initiated by the show‑cause notice dated February 15, 2024, disposed of under section 15JB of the SEBI Act and section 23JA of the Securities Contracts (Regulation) Act, read with regulation 23(1) of the Settlement Regulations.