The Supreme Court of India has left the probe into the Adani-Hindenburg case with the Securities and Exchange Board of India (SEBI). This is against the appeal from petitioners to transfer the case to the Central Bureau of Investigation (CBI).
Chief Justice of India DY Chandrachud ruled out any conflict of interest and told the markets regulator to finish the probe in the remaining two cases (of a total of 24) in three months.
Experts believe this will be the end to the saga that began with the Hindenburg report last year that levelled a series of charges on the Indian conglomerate controlled by billionaire Gautam Adani, who ranks 16th on the Forbes global rich list with a net worth of over $76 billion.
Gautam Adani took to X after the SC verdict to share his reaction.
The Hon'ble Supreme Court's judgement shows that:
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.— Gautam Adani (@gautam_adani) January 3, 2024
The Supreme Court also directed SEBI to look for any "infractions" by the US-based short-seller Hindenburg. To know the charges that were levelled by Hindenburg in January 2023, click here.
“No case made out that the FPI regulations were diluted to allow mischief,” Justice Chandrachud said while reading his order. “In fact, the disclosure norms have only been tightened, now at par with PMLA,” he added.
FPI stands for foreign portfolio investors. PMLA stands for Prevention of Money Laundering Act.
"Court is saying it's better to trust the ability of our regulatory system rather than trusting a short-seller," Shailesh Haribhakti, a chartered accountant and an expert in corporate affairs who sits on various company boards, explained in a conversation with CNBC-TV18 right after the court revealed its verdict.
He was reacting to the court's observation that the report by "a third party" cannot be treated as conclusive proof. Watch the reactions from legal experts in this video.
The petitioner had alleged that at least two members of the committee had a relationship with Adani Group and therefore, there's a conflict of interest. Read more about the petitioners' concerns here.
The expert committee was headed by Former Supreme Court judge Justice AM Sapre. Its members included OP Bhatt (former cairman of State Bank of India), retired judge JP Devadhar, KV Kamath (former chairman of BRICS Bank), Nandan Nilekani (Chairman of Infosys) and Somasekhar Sundaresan (judge at Bombay High Court).
"This is an affirmation that our regulatory bodies are robust, vigilant and active. They have clearly said that there is no need to revoke any approvals that were given earlier. That brings the matter to a close. These things have to be taken to a logical conclusion. If anything is left, the regulatory body will carry out an enquiry and take the process to its end," said Gopal Jain, a senior lawyer at India's Supreme Court.
This was the reaction of Adani Group stocks in the first hour after the SC verdict in the Adani-Hindenburg case.(Edited by : Amrita)
First Published: Jan 3, 2024 11:00 AM IST
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