2024-05-04 02:23:53
New Delhi: Securities and Exchange Board of India (SEBI) has issued show cause notices to six companies of Adani Group. These companies face allegations regarding alleged violations of related party transactions, non-compliance with listing rules and validity of auditor certificates. These companies have given this information in the regulatory filing given to the stock exchanges. Adani Enterprises, the flagship company of the group led by Gautam Adani, the second richest man in India and Asia, said on Thursday that it has received two show cause notices for the quarter ended March 31. Besides, other group companies Adani Ports and Special Economic Zone, Adani Power, Adani Energy Solutions, Adani Wilmar and Adani Total Gas have also received show cause notices. These companies say that according to the legal opinion they have received, SEBI The notice is not likely to have any impact on them. However, the auditors of all the companies except Adani Wilmar and Adani Total Gas have issued a qualified opinion. According to this, the results of SEBI’s investigation may affect the financial statements of these companies in future. These notices were issued after SEBI’s investigation into the allegations made against Adani Group by American short selling firm Hindenburg Research. Show cause notice is not a prosecution. SEBI has asked these companies why monetary and legal action should not be taken against them?
Adani Enterprises’ profit fell by 38%, Adani Ports’s profit rose by 77%.
what is the allegation
Adani Ports and SEZ said that it is alleged that the company has not obtained requisite approvals and has not made requisite disclosures in the financial statements/annual report. Non-refund of security deposits for terminated contracts resulted in the funds not being utilized for the core business purposes of the company and thus not in compliance with the company’s code of conduct. Adani Power said that it has responded to SEBI’s notice. SEBI has alleged that certain transactions were not reported in the financial statements of the respective years and requisite approvals were not taken for such transactions.
SEBI, in its report submitted to the Supreme Court in August, had said that it has identified 13 related party transactions, which are being investigated. The January 2023 Hindenburg Report raised questions about more than 6,000 related party transactions. After this there was a huge fall in the shares of Adani Group. However, the group had denied these allegations. The group’s shares have risen in recent days and have recovered most of the losses caused by the Hindenburg Group report. Adani is currently at number 13 in the list of the world’s richest people with a net worth of $99.1 billion. This year his net worth has increased by $14.8 billion.