Page 30 - The Indian EYE 011224

BUSINESS EYE JANUARY 12, 2024 | The Indian Eye 30

YEAR-END REVIEW 2023

Adani says the group is vindicated after

top court declines plea for special probe

The verdict a blow to the allegations made by US-based firm Hindenburg Research against the
Adani group of companies regarding violations of the stock market

OUR BUREAU
Mumbai
n a relief to the Adani group of companies,
the Supreme Court on Wednesday declined
Ito transfer the probe from Securities and Ex-
change Board of India (SEBI) to a Special Inves-
tigation Team (SIT) or CBI into the Adani-Hin-
denburg issue over allegations of stock price
manipulation by the Indian corporate giant.
A bench of Chief Justice of India DY Chand-
rachud, PS Pardiwala and Manoj Misra said the
scope of power of the apex court to enter into the
regulatory domain of SEBI is limited. It said the
scope of judicial review is only to see whether any
fundamental right has been violated. The SC said
the facts of the case do not warrant the transfer of
the probe to the SIT or other agency. The SC also
said there was no material to doubt the investiga-
tion carried out by the SEBI.
The verdict of the top court came on a batch
of petitions seeking a court-monitored investiga-
tion or CBI probe into the allegations made by
US-based firm Hindenburg Research against the
Adani group of companies regarding violations of
the stock market. Senior lawyer Mukul Rohtagi addresses the media regarding the Adani-Hindenburg case verdict outside the Supreme Court in
The bench said there has been no regulatory New Delhi on Wednesday (ANI Photo/Sanjay Sharma)
failure by SEBI and the market regulator cannot
be expected to carry on its functions based on The Adani Group has dismissed the charges ry regulator to take as a “gospel truth” something
press reports though such reports can act as inputs
for SEBI. The top court asked SEBI to complete as lies, saying it complies with all laws and disclo- which was published in the media.
Advocate Prashant Bhushan, appearing for
sure requirements.
within three months its probe into two cases pend- Various petitions were filed alleging that chang- one of the petitioners, had told the apex court that
ing out of 24 cases. es to the Securities and Exchange Board of India there were many factual revelations in the Hinden-
Adani Group Chairman Gautam Adani on
Wednesday welcomed the ruling of the Supreme Act (SEBI) had provided a shield and an excuse burg report.
for the Adani Group’s regulatory contraventions
After the Supreme Court declined to trans-
Court declining to transfer the probe into the
Adani-Hindenburg matter from market regulator and market manipulations to remain undetected. fer the probe from the Securities and Exchange
Board of India (SEBI) to a Special Investigation
The apex court then asked SEBI to inde-
SEBI to a SIT (Special Investigation Team) or the CBI. pendently probe the matter and also constituted an Team (SIT) or CBI into the Adani-Hindenburg
Adani tweeted saying that the judgement
shows that truth has prevailed and said he was expert committee headed by retired Supreme Court issue, senior Congress leader Jairam Ramesh on
grateful to those who stood by the Adani Group. judge Justice AM Sapre to look into the matter. Wednesday said that the judgement is “extraordi-
In May last year, the expert committee in its
“Satyameva Jayate. I am grateful to those who report had found no prima facie lapse on the part narily generous”.
“The Supreme Court judgment today on cer-
stood by us,” he posted on X. “Our humble con-
tribution to India’s growth story will continue,” the of the SEBI in the matter. tain matters relating to transactions by the Adani
While reserving the verdict, the Supreme
Group has proven extraordinarily generous to
X post added. Court had said it has no reason to “discredit” SEBI, not least by extending its original investiga-
The case is related to the allegations (part of a
report by short-seller Hindenberg Research) that SEBI, which probed allegations against the Adani tion deadline of 14 August 2023 by another three
Adani had inflated its share prices. After these al- group, as there was no material before it to doubt months to 3 April, 2024,” Jairam Ramesh said in
a statement.
what the market regulator has done and the court
legations were published, it led to a sharp fall in does not have to treat what was set out in the Hin- The Congress General Secretary said that the
the share value of various Adani companies, re- denburg report as a “true state of affairs”. SEBI has failed to complete its investigation even
portedly to the tune of USD 100 billion.
It had observed that it cannot ask a statuto- 10 months after the top expert committee asked it.
www.TheIndianEYE.com