NEW DELHI: The Supreme Court has dismissed a plea seeking a new inquiry committee to look into the Hindenburg report, which found 12 dubious transactions involving the Adani Group. The court stated that there is no special inquiry into the Hindenburg report and clarified that it will give another three months for SEBI’s inquiry. At the same time, the court said that the central government should check whether there is any violation of the law and take action as per the law.
It was argued in the petition that SEBI’s investigation was not satisfactory. Stating that there is a limit to SEBI’s power to interfere, the court said that SEBI has completed its investigation in 20 of the 22 cases and taking into account the Solicitor General’s assurance, it has directed SEBI to complete its investigation in the other two cases within 3 months. The court also stated that there is no basis in transferring the investigation from SEBI to the Special Investigation Committee.
A bench headed by Chief Justice DY Chandrachud heard the hearing on a PIL filed by Anamika Jaiswal expressing no confidence in the expert committee looking into the matter and the investigation by the Securities and Exchange Board of India (SEBI). The verdict was postponed to November 24 last.
The Hindenburg Report against the Adani Group came out in January last. Although the performance of Adani companies is poor, Hindenburg’s allegation is that the shares are traded at an inflated amount of around 85 percent. The report, which claims to have been prepared after a 2-year investigation, said that the group with a market value of 12,000 crores earned more than 10,000 crores.
The main allegations raised by Hindenburg were widespread frauds related to accounting in Adani group companies, exaggeration of the share value of the group companies through strategies, mismanagement in the corporate sector, huge debt of the group and threat to the banking industry in India.
English Summary:
Supreme Court to pronounce verdict on Adani-Hindenburg row
2024-01-03 05:18:22
#Relief #Adani #Supreme #Court #rejects #plea #seeking #fresh #inquiry #Hindenburg #Report
