Adani-Hindenburg case: Supreme Court says allegations against members of expert committee are unsubstantiated

Adani-Hindenburg case verdict: The Supreme Court on January 3 said that all the allegations against the members of the expert committee are unsubstantiated. The court delivered the verdict on the petitions seeking a probe into allegations of stock manipulation and other irregularities against the Adani group made by US-based short-seller Hindenburg last year.

The court further stated that there is no ground to transfer the probe in this case and this can only be raised if there is willful or deliberate violation of the rules. The apex court stated that the reliance on OCCPR report is rejected and reliance on a third party organisation report without any verification cannot be relied upon as a proof.

The power of this court to enter the domain of Sebi is limited, the Supreme Court bench said. It further added that there are no valid grounds to direct Sebi to regulate its amendments made in exercise of delegated legislative powers. “Sebi has completed a probe into 22 allegations out of 24. We direct Sebi to complete the remaining 2 within 3 months. Sebi should take logical conclusions in accordance with the law,” the court said.

The court said that Sebi and the government should take into consideration the recommendations of the committee to strengthen interest of the Indian investors.

All 10-listed Adani Group stocks trade higher after the SC's verdict, rising up to 10 per cent in late morning deals.

Also read: Adani-Hindenburg Case Verdict Live: SC says no ground to order SIT or CBI probe

The Chief Justice of India (CJI) DY Chandrachud-led bench had reserved the decision on a bunch of pleas that asked for a court-monitored probe into the accusations against the conglomerate.

The accusations made in the report triggered a rout in group companies’ shares and they together lost almost $100 billion in market value.

There was no material on record to doubt the credibility of SEBI’s investigation, the country’s top judge had said. 

What is the case about

Hindenburg in January 2023 accused the Ahmedabad-based ports-to-power conglomerate of “brazen stock manipulation and accounting fraud”, allegations denied by the Adani group.

After a string of public interest litigations (PILs), the top court in March set up an expert panel to look into the issue and also come up with suggestions to enhance the regulatory framework. In May, a court-appointed expert committee in an interim report said it saw “no evident pattern of manipulation” in billionaire Gautam Adani’s companies and there was no regulatory failure.

Also read: Adani-Hindenburg case: SC verdict out! Adani shares surge; group m-cap swells