Adani-Hindenburg Case Latest Update: The Supreme Court on Wednesday upheld the ongoing SEBI probe into the allegations of fraud and manipulation by the Adani Group, as claimed by the US-based short-seller Hindenburg Research. The court also rejected the plea to transfer the investigation to the CBI, and asked SEBI to complete the remaining two probes within three months. A three-judge bench headed by Chief Justice DY Chandrachud and comprising Justices JB Pardiwala and Manoj Misra pronounced the verdict. The bench said that the court’s power to interfere with the regulatory framework of SEBI is limited.
The court dismissed the petitioners’ reliance on the Hindenburg report, which had accused the Adani Group of inflating its share prices and concealing its beneficial ownership. The court said that SEBI, as a statutory body, is responsible for investigating any securities law violations, and it cannot be expected to act on the basis of a third-party report or media reports. The court also directed the Government of India and SEBI to examine whether the Hindenburg report on short selling violates any laws, and if so, to take appropriate legal action.
Truth has prevailed – Gautam Adani on Adani-Hindenburg Case Verdict
The Adani Group welcomed the verdict and expressed its gratitude to the court. Gautam Adani, the chairman of the group, posted a message on X, formerly Twitter, saying “Truth has prevailed. I am grateful to those who stood by us. Our humble contribution to India’s growth story will continue.” He also thanked the SEBI and the expert committee appointed by the court for their “thorough and fair” investigation.
The verdict came as a relief to the Adani Group, which had faced a sharp drop in its share prices after the Hindenburg report was published in January last year. The report had alleged “brazen accounting fraud” and “stock manipulation” by the group, which the group had denied as baseless and malicious. The report had also triggered a probe by SEBI, which had found no evidence of fraud or manipulation by the group.
The verdict also boosted the confidence of the investors, as the shares of 10 listed Adani Group companies rose in the Mumbai stock market following the verdict. The group, which is considered close to the Modi government, is one of the largest conglomerates in India, with interests in sectors such as energy, ports, airports, mining, and agriculture.