A petitioner in the Adani-Hindenburg row has alleged in a written submission to the Supreme Court that the capital markets regulator Securities and Exchange Board of India (Sebi) failed to comply with the August 14 timeline given by the apex court. In May this year, the Supreme Court had given Sebi time till August 14 to finish the investigation into the allegations levelled by the American short-seller Hindenburg Research on the Adani Group.
"And as it is seen in the present case also that Sebi after the timeline framed by this Hon. Court till 14th August 2023 for submitting investigation report the Sebi has failed to comply," one of the petitioners in the case said. The petitioner further said that the alleged "inordinate delay" on part of the Sebi impacted the probe and raises suspicion among investors.
The submission further stated that a delay in probe "also leads to the manipulations and damage of vital material and evidence." The petitioner's submission came after the top court reserved its verdict on petitions against the conglomerate on Hindenburg's allegations.
The top court noted that the capital markets regulator should complete its probe into all the 24 cases. It also mentioned that Sebi's probe into the Adani-Hindenburg saga cannot be doubted simply on the basis of media reports. The Sebi had told the court at the time that it would not seek more time to complete its investigation as 22 out of the 24 cases related to Hindenburg's allegations against the Adani Group had already been resolved.
Given this development, Adani Group boss Gautam Adani re-entered the list of top 20 billionaires globally. Adani added around $6.5 billion to his wealth in a single day, taking his total wealth to $66.7 billion, according to the Bloomberg Billionaires Index.
Adani Group stocks also gained after the top court reserved its order in the matter. The Adani Group commanded a total market capitalisation of Rs 11.31 lakh crore as on November 28 versus Rs 10.27 lakh crore on Friday. Despite the surge on Tuesday, the conglomerate's m-cap is still 41 per cent than Rs 19.19 lakh crore on January 24, when the Hindenburg report came out.
In January this year, Hindenburg published a scathing report accusing the Adani conglomerate of engaging in fraudulent activities to inflate its stock prices artificially.
The conglomerate said that the allegations made by Hindenburg were all settled by appropriate authorities. It further claimed that the allegations were a "deliberate and malicious attempt aimed at damaging the reputation of the Adani Group and generating short-term profit by driving down Adani Group stocks." It had also called the report a "calculated attack on India."
Soon after the report came out, the Supreme Court was beseeched with a flurry of petititons regarding Hindenburg's allegations. In March 2023, the Supreme Court formed an expert panel to look into the allegations. The panel, led by a former Supreme Court judge, was also tasked with giving suggestions to bolster the existing regulatory framework. The Supreme Court had given Sebi time till May this year to complete its probe. In May, however, the top court granted Sebi an extension till August 14 to finish its investigation.
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