'No conclusions of any...': Adani Group on SEBI seeking more time from SC to complete probe

Hours after market regulator Sebi moved the Supreme Court for more time to probe stock manipulation charges, the Adani Group on Saturday issued a statement saying it was confident that the "truth will prevail". The group said it was fully cooperating with the market regulator and will continue to provide all our support and cooperation.

The embattled group, however, said that it was pertinent to note that in the Sebi application filed before the top court, there were no conclusions of any alleged wrongdoing. "The SEBI application only cites the allegations made in the short-sellers report, which are still under investigation," the group said.

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Adani Group has been under fire since January after US-based short-seller Hindenburg released a damning report claiming that the group indulged in "stock manipulation and "accounting fraud" through offshore shell firms. The group has denied all charges and says it has complied with all laws and disclosure requirements.    

"We have welcomed the investigation, which represents a fair opportunity for everyone to be heard and for all issues to be addressed. We are fully compliant with all laws, rules, and regulations and are confident that truth will prevail," the group said in its statement on Saturday. "We are fully cooperating with SEBI and will continue to provide all our support and cooperation."

Sebi has moved the apex court seeking a six-month extension to complete its probe into the charges of stock price manipulation and any lapses in regulatory disclosures by the Adani Group. The SC had on March 2 asked the market regulator to probe the matter within two months and also set up a panel to look into the protection of Indian investors after a report by the short seller wiped out more than $140 billion of the conglomerate's market value.

In an application, Sebi told the court that for ascertaining possible violations related to misrepresentation of financials, circumvention of regulations, and fraudulent nature of transactions, it would take six more months to complete the exercise. "Pass an order extending the time to conclude the investigation as directed by this Court by the common order dated March 2 by a period of 6 months or such other period as this court may deem fit and necessary in the facts and circumstances of the present case," the plea said.

The market regulator submitted that in respect of the investigation relating to 12 suspicious transactions, these are complex and have many sub-transactions. A rigorous examination of these transactions would require collating data from various sources along with detailed analysis including verification of submissions made by the companies, it said.

"Applicant submits that replies and documents/information received from the companies would require reconfirmation and reconciliation, as well as independent verification. The detailed investigation process would also include depositions as may be required from various entities such as Key Managerial Personnel (KMPs), statutory auditors, and other relevant persons," the market regulator said.

The petition also submitted that the investigation would also require obtaining bank statements from multiple domestic as well as international banks and as the bank statements would also be for the transactions undertaken more than 10 years ago, this would take time and be challenging. 

"This process of seeking bank statements from the offshore banks would entail taking assistance from offshore regulators, which may be time-consuming and challenging... that only thereafter, analysis would have to be conducted for the voluminous bank statements," it said.

(With inputs from PTI)