New Delhi. The Supreme Court on Friday took a tough stance on the petitions demanding investigation of Life Insurance Corporation (LIC) and State Bank of India (SBI). Chief Justice of India D.Y. A bench headed by Chandrachud said, “You are asking the court – without any evidence – to direct an investigation into SBI and LIC. Do you realize the impact of such instruction? Is this a college debate?” Justice J.B. on the bench Pardiwala and Justice Manoj Mishra were also included.
The court asked, “Do you realize that the Supreme Court’s investigation direction against SBI and LIC will have an impact on the stability of our financial market?” It said that the petitioners have not presented any material before the top court nor has the counsel appearing on their behalf made “any argument”. The top court warned the petitioner’s lawyer, saying, “As a lawyer, when you argue, you should be responsible about your arguments.”
Against the backdrop of the Hindenburg report, the petitions filed in the Supreme Court have also sought an investigation into the role of LIC and SBI in allegedly investing “huge amounts of public money” in FPOs of Adani group companies.
The petition filed by Congress leader Jaya Thakur said, “The investigating agencies are directed to investigate the role of respondent nos. 11 (LIC) and 12 (SBI) in huge investment of public money at the rate of Rs 3,200 per share in the FPO of Adani Enterprises.” “While the price of Adani Enterprises shares in the secondary market was around Rs 1,800 per share in the secondary market.”
The apex court had earlier ordered SEBI to investigate the allegations of stock price manipulation by the Adani Group within two months and constituted an expert committee with the aim of reviewing and strengthening the existing financial regulatory mechanisms.
The controversial Hindenburg Research report alleged, inter alia, that Adani group companies manipulated their share prices; Failed to disclose transactions with related parties and other relevant information in violation of regulations made by SEBI; and violated other provisions of the securities laws.
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Tags: Hindenburg Report, Sbi, Supreme Court
FIRST PUBLISHED : November 24, 2023, 8:53 PM IST
