India’s markets regulator will tell the country’s top court why it paused, then restarted investigations into the Adani Group after a tip in 2014 amid questions around regulatory delays, according to two people with direct knowledge of the matter. The Securities and Exchange Board of India (SEBI) will say for the first time that India’s customs authority alerted it to an alleged misuse of offshore funds by Adani Group companies in 2014 but that the initial investigation did not yield anything and was paused in 2017, the sources said.

SEBI restarted investigations into the group this year after U.S.-based short-seller Hindenburg Research raised governance concerns – allegations Adani Group has denied. Both sources declined to be named because they are not authorised to speak to the media. SEBI did not respond to an email seeking comment. UK Sinha, who was chairperson of SEBI during the investigations, declined Reuters requests for comment.

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