Bombay HC Clears Gautam & Rajesh Adani in ₹388 Cr Market Violation Case

Adani Group Secures Legal Victory as High Court Quashes Sessions Court Order

In a major legal relief for Adani Enterprises Limited (AEL) Chairman Gautam Adani and Managing Director Rajesh Adani, the Bombay High Court has quashed all charges related to an alleged ₹388 crore market violation case. The decision marks the end of a 12-year-long legal battle that stemmed from accusations of criminal conspiracy and financial irregularities.

The case, which dates back to 2012, was initiated by the Serious Fraud Investigation Office (SFIO), which had accused AEL and its promoters of violating market regulations. Over the years, the matter passed through multiple judicial levels, with rulings being overturned at different stages.

Developments in the Case:

• 2012: SFIO files a chargesheet, alleging market violations amounting to ₹388 crore.
• 2014: Mumbai Magistrate’s Court discharges the Adanis, citing a lack of evidence.
• 2019: Sessions Court reinstates the case following an appeal by SFIO.
• 2025: Bombay High Court dismisses the case, ruling in favor of Gautam and Rajesh Adani.

The latest verdict is a significant legal win for the Adani Group, which has been under intense scrutiny due to regulatory and financial matters in recent years.

Bombay HC Overturns 2019 Ruling, Dismisses ₹388 Crore Fraud Case Against Adani Group

Background: SFIO Investigation and Initial Allegations

The case originated in 2012, when the Serious Fraud Investigation Office (SFIO) filed a chargesheet against Adani Enterprises Limited (AEL), Gautam Adani, Rajesh Adani, and ten other individuals. The allegations revolved around:

• Criminal conspiracy and cheating: The SFIO claimed that certain financial transactions undertaken by the Adani Group had led to unlawful market gains.
• Violation of market regulations: The investigation accused AEL and its promoters of bypassing financial norms and manipulating share prices.

However, when the case was examined by the Mumbai Magistrate’s Court in 2014, the Adanis were discharged, as the court found insufficient evidence to justify legal proceedings.

2019 Reversal: Sessions Court Revives Market Violation Case

Despite the 2014 ruling, the SFIO continued to pursue the case, challenging the decision in a higher court. In November 2019, the Sessions Court overturned the magistrate’s ruling, arguing that:

✔ There were sufficient grounds to investigate further.
✔ The Adani Group’s financial transactions required closer scrutiny.

The decision meant that Gautam Adani and Rajesh Adani would face legal proceedings once again, putting the Adani Group under renewed regulatory scrutiny.

Gautam Adani, Rajesh Adani Move Bombay High Court Against SFIO’s Charges

Following the 2019 sessions court ruling, the Adani brothers filed a petition in the Bombay High Court, seeking a dismissal of the case. Their legal team argued that:

• The SFIO’s claims were arbitrary and lacked substance.
• The previous discharge order in 2014 had already cleared them.
• The case was politically and financially motivated, with no substantial evidence to justify further prosecution.

Bombay High Court’s Verdict: Case Quashed, Adani Brothers Cleared

On March 17, 2025, the Bombay High Court ruled in favor of Gautam and Rajesh Adani, dismissing the SFIO’s ₹388 crore fraud case.

Highlights of the Judgment:

✔ Sessions court’s 2019 ruling overturned, restoring the 2014 magistrate court’s decision.
✔ Adani brothers officially cleared of all charges related to market manipulation.
✔ The Bombay HC found no evidence of financial misconduct justifying continued legal action.

The verdict reinforces the Adani Group’s legal standing, bringing much-needed relief after years of legal battles and regulatory scrutiny.

What This Means for the Adani Group

The dismissal of the ₹388 crore market violation case removes a major legal roadblock for the Adani Group, which has been expanding aggressively across sectors such as energy, infrastructure, and finance.

Potential Implications:

• Boost to Adani Group’s market confidence: The legal victory could help restore investor trust and stabilize Adani Enterprises’ stock performance.
• Regulatory clarity: The ruling clears the air on past allegations, allowing the Adani Group to focus on business growth.
• End of a 12-year legal battle: The case dismissal removes a significant legal hurdle that had been looming over Gautam Adani and his leadership team.

While the Adani Group has faced regulatory scrutiny in the past, this verdict underscores its ability to navigate legal challenges and maintain business continuity.