Adani Group Chairman Gautam Adani expressed satisfaction with the Supreme Court’s decision on 3rd January, which declined to transfer the Adani-Hindenburg probe from SEBI to a SIT or the CBI. Adani took to Twitter, stating that the judgment reflects the triumph of truth, expressing gratitude to those supporting the Adani Group. He emphasized the group’s commitment to contributing to India’s growth story.
In a favourable outcome for Adani companies, the Chief Justice of India DY Chandrachud, along with Justices PS Pardiwala and Manoj Misra, asserted that the Supreme Court’s authority in SEBI’s regulatory domain is limited. They clarified that judicial review is only applicable to cases involving fundamental rights violations.
The Supreme Court’s decision followed petitions seeking a court-monitored or CBI investigation into allegations by Hindenburg Research against the Adani group for stock market violations. The court acknowledged SEBI’s lack of regulatory failure and urged the completion of its probe into two out of 24 cases within three months.
The case revolves around accusations from Hindenburg Research, claiming that Adani inflated its share prices, resulting in a substantial decline in the market value of Adani companies. Adani Group vehemently denied the charges, asserting compliance with all laws and disclosure requirements.
Petitions alleged that changes to the SEBI Act shielded Adani Group’s regulatory contraventions. The Supreme Court directed SEBI to independently investigate, forming an expert committee led by retired Supreme Court judge Justice AM Sapre. Last year, the committee found no prima facie lapse by SEBI.
While reserving the verdict, the Supreme Court emphasized not discrediting SEBI without evidence, refusing to treat Hindenburg’s report as a true reflection of events. Advocate Prashant Bhushan urged the court to assess SEBI’s credibility and consider the need for an independent organization or SIT for investigation.