Supreme Court Petition Seeks Probe into Media Influence on Stock Market Crash Post-Election

A petition has been filed in the Supreme Court of India demanding an investigation into the actions of several media houses and their affiliates for allegedly broadcasting exit polls immediately after the final phase of the Lok Sabha elections. The petitioner claims that this action resulted in a significant loss of Rs 31 lakh crore for investors due to a subsequent stock market crash on June 4, 2024.

The petition, filed by advocate BL Jain through advocate Varun Thakur, contends that media outlets began extensive debates on exit polls right after the last phase of the election concluded on June 1. These discussions reportedly influenced ordinary investors, encouraging them to invest in the stock market when it reopened on June 3. This led to an initial surge in the stock market, which then dramatically crashed once the actual election results were announced.

According to the plea, the share market experienced a significant rise following the exit polls but plummeted on June 4, the day the votes were counted. This resulted in a massive financial loss for common investors, totaling Rs 31 lakh crore. The petition argues that this financial turmoil not only affects individual investors but also has broader implications for the Indian economy and its global reputation.

The petitioner emphasizes that media broadcasts should remain unbiased and not favor any political party. However, the petition alleges that the electronic media, functioning with commercial motives, has been manipulated by political entities to influence public opinion and market behavior. The petition also points out that the conduct of these media houses is in violation of Section 126A of the Representation of People Act, 1951, and the guidelines issued by the Election Commission of India on April 2, 2024.

Also read: Why Does Prime Minister of India Takes Oath of Office and Secrecy?

The plea calls for a comprehensive investigation by multiple agencies, including the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED), the Central Board of Direct Taxes (CBDT), the Securities and Exchange Board of India (SEBI), and the Serious Fraud Investigation Office (SFIO). The media entities named in the petition include Axis My India, India Today Media Plex, Times Now, Independent News Service Private Ltd. (India TV), ABP News Pvt Ltd., Republic Media Network, News National Network Pvt Ltd., TV9 Bharatvarsh, and NDTV.

“The Parliament of India enacted the Representation of People Act, 1951, for the smooth function of free and fair election and to regulate the election process during the elections. But through exit polls, the media houses in collusion with corporate houses started manipulating election results. This act of the respondents is violating the concept of free and fair election in a democracy and interfering with the rule of law…,” the petition stated.