New Delhi: Capital markets regulator SEBI has cleared the Adani Group of all allegations in the Hindenburg case, stating that the charges could not be established. Consequently, the regulator confirmed that there is no liability or penalty on the group.

The proceedings against key group companies, including Adani Ports, Adani Power, as well as Gautam Adani and Rajesh Adani, have also been disposed of by SEBI.

In two separate orders, the regulator found no violations, noting that at the time such transactions with unrelated parties did not qualify as related party dealings (the definition was expanded only after a 2021 amendment).

It also noted that the loans were repaid with interest, no funds were siphoned off, and hence there was no fraud or unfair trade practice.

Accordingly, all proceedings against the Adani Group have been dropped.

Hindenburg, in January 2021, alleged that the Adani Group used three companies -- Adicorp Enterprises, Milestone Tradelinks, and Rehvar Infrastructure -- as conduits to route money between Adani group firms.

The claim was that this helped Adani avoid rules on related party transactions, possibly misleading investors.