The Securities and Exchange Board of India (SEBI) has concluded its investigation into Adani Enterprises and related entities regarding alleged Hindenburg allegations related to transactions with Milestone Tradelinks and Rehvar Infrastructure. The investigation, spanning from 2018-19 to 2022-23, found that allegations concerning related party transactions could not be established and consequently recommends no further action.
SEBI Investigation Outcome
After a thorough investigation, the Securities and Exchange Board of India (SEBI) has determined that allegations against Adani Enterprises (AEL) and associated entities related to dealings with Milestone Tradelinks Pvt. Ltd. and Rehvar Infrastructure Pvt. Ltd. could not be substantiated. The investigation period encompassed financial years 2018-19 to 2022-23.
Key Findings
The central issue investigated was whether loan transactions involving Adani Enterprises, Adani Power, and Adani Ports & Special Economic Zone (APSEZ) through Milestone Tradelinks and Rehvar Infrastructure could be classified as related party transactions under the LODR Regulations. SEBI’s analysis concluded that these transactions did not meet the criteria for related party transactions under the regulations applicable during the investigation period. Consequently, allegations regarding non-compliance and a scheme to conceal related party transactions were not substantiated.
Implications
As the investigation did not find evidence to support the allegations, no penalties or further directions will be imposed on Adani Enterprises or the other entities involved. The order emphasizes that the transactions in question were conducted at arm’s length and that all loans were repaid with interest before the start of the investigation, ensuring no loss or detriment to the company or its investors.
Source: BSE
