Supreme Court to Rule on Hindenburg's Allegations Against Adani Group
The Supreme Court is set to announce its decision on petitions demanding a court-supervised investigation into the Adani Group, following allegations of financial misconduct by Hindenburg Research.
New Delhi: The Supreme Court is set to give its verdict on Wednesday on a series of petitions. These petitions demand a court-supervised investigation into the allegations made by the US-based company Hindenburg Research against the Adani Group. These allegations are about violations in the stock market, as reported by ANI.
Back in January last year, Hindenburg Research accused the Adani Group of serious 'accounting fraud' and 'stock manipulation'. The Adani Group dismissed the report as 'baseless' and 'maliciously misleading'.
Following the report, Adani Group's stocks suffered a huge fall, losing over $140 billion in value within a few days. This also led to the cancellation of a share sale worth ₹20,000 crore.
In November last year, the Supreme Court noted that it wouldn't be right to appoint a special investigation team (SIT) to look into the allegations against Adani Group companies for not following public shareholding rules without proof of mistakes by the Securities and Exchange Board of India (Sebi), which is currently investigating the matter. The court, while keeping its judgment pending, stated that it cannot order an investigation based merely on some media reports and without hearing from the affected parties.
"Where is the evidence before us to start doubting Sebi? Sebi is a legal body with the sole responsibility to investigate stock market manipulations. Is it right for the top court of the country to say without any solid evidence that ‘we don’t trust Sebi, and we will set up our own SIT’? This must be done very carefully," said Chief Justice of India DY Chandrachud, addressing the lawyer of the petitioners, Prashant Bhushan.
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