Adani Group Auditor Faces Scrutiny by NFRA in India

An auditor associated with the Adani Group is currently under investigation by India’s accounting regulator, the National Financial Reporting Authority (NFRA). The inquiry, which started recently, is focused on one of EY’s member firms in India, S.R. Batliboi. The NFRA has requested files and communications related to audits of companies controlled by billionaire Gautam Adani dating back to 2014.

It remains uncertain how long this investigation will take or what potential consequences the auditor and Adani’s companies may face. S.R. Batliboi is the statutory auditor for five listed Adani companies, which generate about half of the group’s revenues.

This scrutiny highlights ongoing concerns about accounting and disclosures within the sprawling Adani conglomerate, which faced allegations of corporate malfeasance from a short-seller attack in January. The group has strongly denied these allegations and is also under investigation by India’s market regulator, SEBI.