Adani firms pay Rs.1.5 cr to settle Sebi's Hindenburg-linked probe
mumbai, Sept. 23 -- Five Adani Group companies have settled regulatory proceedings with the Securities and Exchange Board of India (Sebi) by paying a combined Rs.1.5 crore, resolving cases linked to alleged disclosure lapses and audit-report compliance issues.
According to a Sebi settlement order issued on Tuesday, the agreement covers Adani Enterprises Ltd (AEL), Adani Total Gas Ltd, AWL Agri Business Ltd, Adani Green Energy Ltd, and Adani Energy Solutions Ltd.
The proceedings followed Sebi's review of multiple Adani Group companies following the Hindenburg Report, which raised allegations regarding related-party transactions, corporate governance, and potential listing violations.
In AEL's case, Sebi alleged that the company failed to report related-party transactions between its subsidiary Adani Estates Pvt Ltd and Vakoder Investment Ltd in its FY13 annual report, violating applicable accounting standards.
The regulator also alleged that certain audit and limited-review reports of the companies had been signed by Dharmesh Parikh & Co LLP or Shah Dhandharia & Co LLP without a valid peer review certificate.
The reports in question related to different financial years and quarters between 2015 and 2021. A peer review certificate for accountants is an official document that confirms a chartered accountant (CA) firm's internal quality control systems and audit procedures comply with professional and ethical standards.
For AEL', the probe flagged its FY15 audit report alongside limited-review reports for June 2015, June and September 2017, and December 2021. For AGEL, Sebi cited the FY19 audit report and limited-review reports from September and December 2018 and June 2019.
The proceedings also covered December 2021 limited-review reports for Adani Total Gas and AWL Agri Business, as well as Adani Energy Solutions' June 2015 report....
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