Verdict in the Adani Hindenburg case: The Supreme Court further stated that the Center and Sebi will investigate if Hindenburg had broken any laws.
On Wednesday, the Supreme Court said that there was no justification for excluding the Adani group of firms’ probe from the markets regulator’s Hindenburg report. It gave the Securities and Exchange Board of India (Sebi) a three-month window to finish looking into two outstanding issues.
Additionally, the Supreme Court declined to impede the Sebi’s investigation. On November 24, a bench made up of Justices JB Pardiwala and Manoj Misra, along with Chief Justice DY Chandrachud, had reserved the decision. It stated that there was no reason to doubt Sebi’s inquiry.
Sebi informed the Supreme Court on August 23 of last year that it had investigated all but two of the claims made against the Adani group and that it was still expecting evidence from five tax havens regarding the true owners of the foreign investors who had made the conglomerate’s investments.
“Only extraordinary situations may be used to transfer an investigation. CJI Chandrachud stated on Wednesday that “such powers cannot be exercised in the absence of cogent justifications,” according to Live Law.
The top court further stated on Wednesday that investigations into potential short-selling violations by Hindenburg Research would be conducted by the Centre and Sebi. In the event of a breach, they are free to take any legal action necessary.
The Supreme Court stated that the Organised Crime and Corruption Reporting Project (OCCRP) report, which was made public on August 31 of last year, could not be used as justification for casting doubt on the Sebi’s investigation and conclusions. The CJI stated that a “third-party organisation report without any verification cannot be relied upon as a proof” .
The court further stated that media reports should only be used as supporting evidence in these kinds of instances and cannot be regarded as definitive proof.
