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Hindenburg Report: Did the SC Give a Clean Chit to Adani Group?

Hindenburg Report: The claim circulating in the market and the media that the Adani Group has been given a clean chit is misleading. Here’s what has really happened...

By Ravi Nair
New Update
Hindenburg Report | Sc | Adani

Hindenburg Report: Did the SC Give a Clean Chit to Adani Group? | Supreme Court of India (Left), Adani Group office (Right) | Photo courtesy: Special arrangement

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Hindenburg Report and the Supreme Court: Was the Adani Group Exonerated?

On August 10, 2024, Hindenburg Research released a report titled “Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Syphoning Scandal.” The report levelled serious allegations against Madhabi Buch, the current Chairperson of the Securities and Exchange Board of India (SEBI), and her husband, Dhaval Buch. According to Hindenburg, the Buchs held stakes in offshore funds linked to a broader scheme involving the Adani Group’s alleged financial misconduct.

In response, the Adani Group swiftly issued a press statement dismissing the claims as recycled accusations that had already been investigated and dismissed by the Supreme Court of India in March 2023. This statement fueled a wave of media narratives suggesting that the Adani Group had received a clean chit from the country’s highest court. But did the Supreme Court actually absolve the Adani Group of all wrongdoing? What did the Court’s order truly entail, and why is it critical to understand the gravity of its findings now? These questions are crucial as we unravel the layers of this complex case. To understand the Supreme Court’s stance, it is essential first to revisit the initial report by Hindenburg Research that set the stage for the ongoing scrutiny of the Adani Group. 

What Did the 2023 Hindenburg Report Say?

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On January 24, 2023, Hindenburg Research published a report titled "Adani Group: How The World's 3rd Richest Man Is Pulling The Largest Con In Corporate History." In this report, Hindenburg accused the Adani Group of engaging in a ‘brazen stock manipulation and accounting fraud scheme over the course of decades’. 

The report highlighted that Gautam Adani’s elder brother, Vinod Adani, through a network of close associates, managed a complex web of offshore shell companies. Hindenburg identified 38 shell companies in Mauritius linked to Vinod Adani or his associates. Additionally, similar entities were found in Cyprus, the UAE, Singapore, and various Caribbean Islands.

According to the report, many of these companies had no clear signs of actual business operations—no reported employ

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