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‘Truth has prevailed’ says Adani after SC ruling in Hindenburg case
The Supreme Court denied transferring the Adani Group probe from SEBI to SIT
Gautam Adani / Image – X/@gautam_adani
The Supreme Court refused to interfere with the market regulator Securities and Exchange Board of India (SEBI) probe into the Adani-Hindenburg case in a ruling on January 3.
This comes months after the SEBI cleared the Adani Group in 22 out of 24 allegations against it after a whistle-blower report by Hindenburg Research came to light. Released in January 2023, the report said it was “presenting evidence” about the Adani Group’s involvement in alleged accounting fraud, stock price manipulation, and improper use of tax havens.
In its ruling, the Supreme Court of India said that the Adani Group need not be subjected to more investigations beyond the current scrutiny of the market regulator. The SEBI has been probing the group since 2023.
The SC also denied requests to transfer the probe from SEBI to the Special Investigation Team (STI). The court rejected conflict of interest claims on the part of the expert committee that carried out the probe and submitted the report to the court in August 2023.
“Sebi has completed a probe into 22 allegations out of 24. We direct Sebi to complete the remaining 2 within 3 months. Sebi should take logical conclusions in accordance with the law,” the court said.
"The reliance on unsubstantiated news reports and third-party organisations cannot be accepted to doubt the probe by a statutory regulator," the court added.
In March 2023, two months after the Hindenburg report was published, a six-member expert panel was formed to investigate the regulatory aspects of the allegations against the Adani Group.
In May, the panel said SEBI found nothing in its investigations and that its ongoing pursuit of the case was a “journey without a destination.” The SC had set an August 14, 2023, deadline for SEBI to complete its probe and submit findings. After a 15-day extension, the market regulator submitted its report clearing Adani of 22 allegations.
The Hon'ble Supreme Court's judgement shows that:
— Gautam Adani (@gautam_adani) January 3, 2024
Truth has prevailed.
Satyameva Jayate.
I am grateful to those who stood by us.
Our humble contribution to India's growth story will continue.
Jai Hind.
Prior to the publishing of the Hindenburg Research report, Gautam Adani was the richest Indian and Asian as well as the third richest man in the world. However, he plunged to the 25th position on the list of billionaires worldwide after the report came out. It also resulted in a decline in his personal wealth by over US $100 billion.
After the recent SC verdict, shares of all 10 listed Adani Group stocks traded higher, rising up to 10 per cent. “Truth has prevailed. Satyameva Jayate. I am grateful to those who stood by us,” Adani said on X.
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