Bombay High Court clears Gautam Adani and brother in market fraud case

The Bombay High Court has discharged industrialists Gautam Adani and his brother Rajesh Adani from a case related to alleged market regulation violations by Adani Enterprises.

The decision, delivered on Monday, overturns a previous sessions court ruling that had reinstated charges against the company and its promoters.

The case originated from an investigation by the Serious Fraud Investigation Office (SFIO), which raised concerns about Adani Enterprises’ regulatory compliance and financial transactions. The probe highlighted an alleged unlawful gain of approximately Rs 388 crore.

In 2012, the SFIO filed a case against Adani Enterprises and its promoters, including Gautam and Rajesh Adani. This led to a chargesheet being filed against 12 individuals, including the Adani brothers. However, in May 2014, a magistrate’s court in Mumbai discharged them from the case.

The SFIO later challenged the discharge order, and in November 2019, a sessions court ruled in favor of the agency, setting aside the magistrate’s decision. The sessions court noted that the SFIO had presented sufficient evidence suggesting unlawful financial gains by the Adani Group.

In response, Adani Enterprises and the Adani brothers approached the Bombay High Court, arguing that the sessions court’s decision was “arbitrary and illegal.” Following their plea, the High Court granted a stay on the sessions court’s ruling, which remained in effect throughout the legal proceedings.

On Monday, the Bombay High Court allowed the Adanis' petition and formally discharged them from the case. A detailed order is yet to be released.