The Supreme Court has ruled against transferring the Adani-Hindenburg case investigation from SEBI to a Special Investigation Team (SIT). The court instructed SEBI to conclude its probe into two pending cases against the Adani group within three months.
Following the judgment, billionaire Gautam Adani declared that the ‘truth has prevailed,’ expressing his reaction just moments after the Supreme Court upheld SEBI’s clean chit regarding allegations by US-based short seller Hindenburg Research.
Supreme Court Grants SEBI Three Months for Adani-Hindenburg Case Investigation
The Supreme Court, led by Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra, granted SEBI three months to investigate two cases out of four Adani-Hindenburg cases involving allegations of stock price manipulation by the Indian corporate giant.
The court emphasized its inability to regulate SEBI’s investigative authority, asserting that ’till now,’ no concrete evidence has emerged against Gautam Adani. Additionally, the apex court highlighted that the circumstances of the case do not necessitate transferring the probe to a Special Investigation Team (SIT) or another investigative agency.
SEBI has successfully concluded its investigation in 22 out of 24 cases concerning allegations against the Adani group. The ruling underscores the court’s commitment to allowing SEBI to proceed with its inquiry independently. The apex court asserted that the case facts do not justify transferring the probe into the matter to a Special Investigation Team (SIT) or any other probe agency.
Court Delivers Verdict on Adani Group’s PILs
Chief Justice D Y Chandrachud, Justice J B Pardiwala, and Justice Manoj Misra pronounced the judgment at 10:30 am today on four petitions. Reserved on November 24, 2023, the PILs alleged that the Adani Group, linked to the Modi government, artificially inflated share prices. After the Hindenburg Research report, the share values of group entities reportedly plummeted.
In March 2023, the Supreme Court instructed SEBI to investigate securities law violations by the Adani Group. The court established an expert committee led by former judge Justice AM Sapre.
Billionaire Gautam Adani’s conglomerate faced a substantial wealth loss after Hindenburg Research accused it of market manipulation and accounting fraud in January 2023. The short seller’s report alleged accounting fraud, stock manipulation, and improper use of tax havens. The Adani group, refuting all claims, saw a market value loss of nearly $150 billion. Subsequently, the Supreme Court tasked SEBI with probing the matter following the Hindenburg allegations.