Adani-Hindenburg case verdict: The Supreme Court on December 3 pronounced its verdict on a batch of petitions that were filed seeking a court-monitored investigation or CBI probe into the allegations made against Adani Group of companies in the Hindenburg Research report. A bench comprising Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra delivered the judgement.
Here are 10 points to know from the judgment
1. While reading out the judgement, CJI DY Chandrachud rejected key demands of petitioners seeking to derail the ongoing SEBI investigation into allegations raised by Hindenburg Research. The SC held that there is no ground to transfer the Adani Hindenberg case investigation from the Securities and Exchange Board of India (SEBI) to a Special Investigation Team (SIT).
2. CJI stated that SEBI has completed an investigation in 20 out of 22 matters and has directed the regulatory body to complete the probe within three months in the remaining two cases.
3. While pronouncing the judgment, SC said that the report of OCCRP cannot be taken into account to doubt the SEBI investigation. “The reliance on OCCRP report is rejected and reliance on a third party organisation report without any verification cannot be relied upon as a proof,” CJI said as quoted by LiveLaw.
4. CJI said, relying on newspaper reports and third-party organisations to question the statutory regulator does not inspire confidence, further adding, he said that they can be treated as inputs but not conclusive evidence to doubt the SEBI probe. The SC also said there was no material to doubt the investigation carried out by the SEBI.
5. The apex court ordered the Centre and SEBI to investigate whether the Hindenburg report on short selling violates any laws, and if so, to take appropriate legal action. It also told the Centre and SEBI to consider the recommendation of an expert committee to strengthen the regulatory framework.
Meanwhile, Adani Group stocks surged to the tune of 3 per cent to 18 per cent in intraday trade on January 3, after the Supreme Court’s verdict on petitions seeking an investigation into fraud allegations against Adani Group companies, as outlined in the Hindenburg Research report.
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Published: 03 Jan 2024, 11:12 AM IST