In a significant development, the Supreme Court of Bharat has delivered its verdict on the Adani-Hindenburg case, dismissing the plea for a Special Investigation Team (SIT) probe against the Adani Group. Adani Group chairman, Gautam Adani, expressed gratitude for the support received and asserted that truth has prevailed.
The bench, comprising Chief Justice DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra, rejected the SIT probe and entrusted the Securities and Exchange Board of India (SEBI) to continue its investigation. The court emphasized that relying solely on newspaper reports and third-party organizations to question the statutory regulator, SEBI, lacks confidence. While such sources can be considered as inputs, they cannot be deemed conclusive evidence, the Supreme Court stated.
Addressing the transfer of the case, the apex court highlighted that SEBI had already completed its probe in 20 out of the 22 cases. The court directed SEBI to conclude its investigations within three months, emphasizing that there was no basis to claim SEBI’s lackadaisical approach.
The government and SEBI have been tasked with looking into the allegations against the Adani Group, with the court asserting that no valid grounds have been raised to direct SEBI to revoke its amendments on Foreign Portfolio Investment (FPI) and Listing Obligations and Disclosure Requirements (LODR).
Congress MP Manish Tewari, while acknowledging that he had not yet reviewed the verdict, raised concerns about the time taken for SEBI to complete the investigation. Tewari emphasized that the Hindenburg report, which surfaced a year ago, warranted a swift response, and the delay in the investigation reflected a lackadaisical attitude on SEBI’s part.
This landmark verdict not only vindicates the Adani Group but also sheds light on the challenges and expectations placed on regulatory bodies in addressing sensitive financial matters. The court’s decision underscores the importance of a thorough and timely investigative process in maintaining public confidence in regulatory institutions.
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