13/03/2024, 13:27 India Supreme Court refuses special probe into Adani over Hindenburg report - JURIST - News

SUPPORT US

DONATE NOW

News ▾ Dispatches ▾ Commentary ▾ Features ▾ Topics ▾ Rule of Law ▾ About ▾

News
Support ▾

© JURIST / Neelabh Bist

India Supreme Court refuses special probe into Adani over

Hindenburg report
Shashank Pandey | The West Bengal National U. of Juridical Sciences, IN
JANUARY 3, 2024 11:45:29 AM

The Indian Supreme Court refused Wednesday in its Vishal Tiwari v Union of India ruling to
transfer investigations against the Adani Group, an Indian multinational conglomerate, to a
Special Investigation Team (SIT) or the Central Bureau of Investigation (CBI). The investigation
into alleged stock manipulation is currently being carried out by the Securities and Exchange
Board of India (SEBI), which has been directed to complete the remaining two out of 24
investigations within three months.

The Supreme Court emphasized the court’s limited role in SEBI’s regulatory domain,
restricting any intervention to instances of fundamental rights violations or manifest
arbitrariness. The court dismissed calls to revoke SEBI’s amendments, validated tightened
regulations and directed SEBI to expedite pending investigations.

https://www.jurist.org/news/2024/01/india-supreme-court-refuses-special-probe-into-adani-over-hindenburg-report/#:~:text=The Indian Supreme Court refused… 1/42

13/03/2024, 13:27 India Supreme Court refuses special probe into Adani over Hindenburg report - JURIST - News

SEBI had introduced amendments to the SEBI (Foreign Portfolio Investments) Regulations,
20143 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,
which were alleged to have increased opacity by the petitioner. The court rejected
transferring investigations from SEBI, dismissing claims of lackadaisical investigation and
conflict of interest. The petitioner’s reliance on third-party reports and letters was rejected as
inconclusive proof. The court urged the Union government and SEBI to consider the Expert
Committee’s suggestions for strengthening the regulatory framework. However, SEBI and
investigative agencies were directed to probe potential legal infractions in the loss suffered by
Indian investors, with appropriate actions to be taken if violations are identified.

Following the judgment Chairman of the Adani Group Gautam Adani tweeted, “The Hon’ble
Supreme Court’s judgement shows that: Truth has prevailed. Satyameva Jayate [which
translates to: Truth alone triumphs]. I am grateful to those who stood by us. Our humble
contribution to India’s growth story will continue. Jai Hind (Hail India).” Meanwhile, advocate
and Member of Parliament of Indian National Congress, the largest opposition party, Manish
Tewari commented,

I have not read the SC order in detail but they have directed the SEBI to complete
their investigation in two months. The fact remains that the allegations made in the
Hindenburg report came into the public space a year ago and if the SEBI had been
vigilant or they would have been swift, the investigation would have been
completed a long time back.

The Supreme Court had ordered an investigation into the Adani Group following
accusations of business malpractice in March 2023. This decision came after a research
report by Hindenburg detailed a two-year investigation into the Adani Group, alleging stock
manipulation. The court had directed the SEBI to probe potential failures to disclose
transactions with related parties and stock price manipulation. An expert panel, headed by a
retired Supreme Court judge, had been formed to enhance investor protection mechanisms.
The Hindenburg report claimed the Adani Group’s activities had led to a $135 billion USD loss
for several listed companies. The Adani Group denied these allegations, asserting proper
disclosure and auditing of party transactions.

The Indian opposition has long claimed that the government of India is protecting the Adani
Group due to the close relationship between Gautam Adani and the top leaders of the ruling
party.

https://www.jurist.org/news/2024/01/india-supreme-court-refuses-special-probe-into-adani-over-hindenburg-report/#:~:text=The Indian Supreme Court refused… 2/42

13/03/2024, 13:27 India Supreme Court refuses special probe into Adani over Hindenburg report - JURIST - News

SUBSCRIBE TO JURIST

Email Address

SUBSCRIBE

LATEST TWEETS

https://www.jurist.org/news/2024/01/india-supreme-court-refuses-special-probe-into-adani-over-hindenburg-report/#:~:text=The Indian Supreme Court refused… 3/42