Adani Group entities have reached out to the securities and exchange board of India (Sebi) to settle a case against it regarding breaching of public shareholding norms. Around four listed entities closely connected with the power-to-port conglomerate, including Emerging India Focus Funds (EIFF) and Adani Enterprises (AEL), have been accused of indulging in unfair practices, according to Economic Times.
The settlement offers have come following a show cause notice issued by Sebi in September to EIFF and AEL. The settlement application is just a procedural requirement, and the regulator reportedly is yet to decide in the case.
“Sebi is yet to take a view on the settlement applications,” ET reported, citing a source. “Filing a settlement application is the normal course of process for any corporate that has been served a show cause notice because if you don’t file within 60 days you forfeit your right for settlement,” the source added.
EIFF is a Mauritius-based foreign portfolio investor that Sebi alleges is managed by Gautam Adani’s older brother, Vinod Adani. EIFF reportedly offered a settlement worth Rs28 lakh, whereas AEL present and former directors Vinay Prakash and Ameet Desai, respectively, have proposed to pay Rs3 lakh each. The AEL’s directors name too surfaced in the case of violating public shareholding norms.
There are nearly 26 other entities that have been served with similar show cause notices including the Adani Group chairman, Gautam Adani, his nephew Pranav Adani, his brothers Vinod, Rajesh and Vasant Adani.
“Group entities have also separately filed a response to the show cause notice, contesting the charges and requesting inspection of the documents on which the charges are based...This is without admitting or denying the charges and to buy peace,” said the person in the report.
This isn’t the only case where the Adani Group has come under scrutiny for its business practices. The Group is being accused of fraud by the US Department of Justice (DOJ) and US Securities and Exchange Commission (SEC). A US court in an indictment order has even issued an arrest warrant against the billionaire Gautam Adani and his nephew Sagar Adani. While at home, opposition leader Rahul Gandhi is persistently raising the demand to form a joint committee probe against the Adani Group chairman in the ongoing winter session of the Parliament. The Andhra Pradesh government is also mulling over the power supply deal signed by the previous state government with the power-to-port conglomerate.
