SC Directs Regulator to Conclude Adani Group Probe in 3 Months

SC Directs Regulator to Conclude Adani Group Probe in 3 Months

VoM News Desk | January 3, 2024 | 11:27 AM IST | Breaking News, Courts & Law | Follow on Google News

SC Directs Regulator to Conclude Adani Group Probe in 3 Months/PTI

SC Directs Regulator to Conclude Adani Group Probe in 3 Months

Supreme Court Declines SIT Probe, SEBI to Continue Inquiry into Adani Group Allegations

In a significant development, the Supreme Court rejected the formation of a Special Investigation Team (SIT) to examine allegations against the Adani Group. Instead, the court affirmed the Securities and Exchange Board of India (SEBI) to persist with its ongoing investigation, deeming SEBI’s approach competent and dismissing claims of negligence.

The apex court clarified its jurisdictional limitations within the regulatory framework, asserting that reports like that of Hindenburg cannot unilaterally trigger a separate inquiry. Emphasizing SEBI’s autonomy, the court directed the regulatory body to conclude its inquiry within three months, following the law’s due course.

A bench comprising Chief Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra issued the verdict on four petitions filed by various entities, including lawyers Vishal Tiwari and ML Sharma, along with Congress leaders Jaya Thakur and Anamika Jaiswal.

Highlighting SEBI’s progress, the court mentioned the completion of investigations in 20 out of 22 cases, with the remaining two expected to conclude within the stipulated three-month timeline.

The court also disregarded reliance on reports like the OCCPR (presumably referring to Hindenburg Research), rejecting them as unsubstantiated evidence and underscoring the need for verified and credible information in regulatory matters.

The case stemmed from accusations suggesting that SEBI shielded Adani Group’s alleged regulatory violations. This prompted the Supreme Court to mandate an independent investigation, establishing a committee led by former Supreme Court Judge Justice AM Sapre.

During proceedings, Solicitor General Tushar Mehta, representing SEBI, highlighted the international dissemination of false narratives to influence Indian policies.

Hindenburg Research had raised allegations of fraudulent practices and stock manipulation against the Adani Group, which the group vehemently refuted as baseless.

VoM News Desk

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