Bombay high court clears Gautam Adani, Rajesh Adani in ₹388 crore Ketan Parekh case

The Bombay high court on Monday cleared Adani Group chairman Gautam Adani and managing director Rajesh Adani in a ₹388 crore case linked to the 1999 Ketan Parekh stock market scandal, which was under investigation by the Serious Fraud Investigation Office (SFIO).

A single-judge bench of Justice R.N. Laddha set aside the 2019 sessions court ruling that had overturned an earlier discharge order. The detailed judgment is awaited.

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The case stemmed from a government-ordered probe into Triumph Security Ltd and its management. The SFIO alleged that Gautam and Rajesh Adani had provided funds and shares to entities linked to Parekh to manipulate stock prices for illegal gains. 

According to the complaint, Parekh’s entities earned approximately ₹151.40 crore through transactions involving Adani scrips, while Adani Group’s promoters allegedly amassed ₹388.11 crore unlawfully, causing an estimated ₹540 crore loss to the public and other investors.

In 2012, the SFIO filed a chargesheet against Adani Enterprises Ltd and 12 individuals, including Gautam Adani and Rajesh Adani, for alleged cheating and conspiracy. A magistrate court discharged them in 2014, but the SFIO challenged the decision in 2015 through a criminal revision plea. 

In 2019, the sessions court reinstated the charges, ruling that the magistrate’s findings lacked legal merit. Subsequently, the Adanis filed a petition in the Bombay high court in 2019, contesting the sessions court’s decision.

The sessions court later granted a temporary stay on its order, which was subsequently extended by the high court. On Monday, the high court struck down the sessions court ruling, clearing Adani and others.

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Ketan Parekh, once a prominent Mumbai stockbroker, orchestrated a major stock market scam between 1998 and 2001. He manipulated select stocks—dubbed K-10 stocks—through circular trading and leveraged funds borrowed from banks, including Madhavpura Mercantile Cooperative Bank, where he was a director. The artificial price inflation ultimately triggered a market crash in 2001. 

Subsequent investigations by the Securities and Exchange Board of India led to Parekh’s conviction in 2008 and a 14-year trading ban.