After hearing a batch of four petitions seeking court’s intervention and probe into the Adani-Hindenburg matter, the apex court will on Thursday pronounce its verdict on the constitution of a panel. The bench hearing the petition comprises CJI DY Chandrachud, Justices PS Narasimha and JB Pardiwala.
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The Supreme Court bench heard the petitions on February 17. However, the bench had reserved its order on the constitution of a committee and recusal. The committee will be responsible for looking into the Adani-Hindenburg affair, which led to a sharp drop in the group’s share price after the release of the report. The report accused the Adani group of stock manipulation and fraud, but the Gautam Adani-led group denied all such claims.
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Hearing the petitions, the Supreme Court had rejected the government’s ‘sealed cover’ candidates for the members of the inquiry committee. It insisted that the panel members would be selected only by the court and in a transparent manner. The top court underlined how the process should set an example of transparency and trust without giving the impression of creating a “government-appointed” panel.
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The central government, in its note submitted to the court through Solicitor General Tushar Mehta, had suggested that the role of the proposed panel should be to ascertain the veracity of the allegations against Adani group companies in the Hindenburg Report.
According to the note, the probe should also focus on Hindenburg’s admitted position of holding ‘short positions’ in the Adani group and gather details of all transactions carried out by it and its associated companies. The note also gave some names for the proposed panel in a sealed cover.
Notably, the Hindenburg Report, released on January 24, alleged “brazen stock manipulation” and “accounting fraud” by the Gautam Adani-led group. Adani-Group responded to the report and rejected all its claims and called it an attempt to malign India globally. However, the denial could not stop the massive stock depreciation of Adani shares, which led to its flagship firm losing more than $120 billion in days.
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