New Delhi, In a significant development, the Supreme Court (SC) rejected the transfer of the Adani fraud case investigation to a Special Investigation Team (SIT). The court also directed the Centre and SEBI to probe whether the Hindenburg report on short selling violates any laws.
Gautam Adani, Chairman of the Adani Group, expressed his satisfaction with the verdict, stating on X (formerly Twitter), “Truth has prevailed. I am grateful to those who stood by us. Our humble contribution to India’s growth story will continue. Jai Hind.”
The SC, comprising Chief Justice D Y Chandrachud and justices J B Pardiwala and Manoj Misra, delivered the judgment on a batch of petitions related to allegations of fraud against Adani Group in the Hindenburg Research report.
CJI DY Chandrachud, while reading the judgment, dismissed key demands seeking to shift the ongoing SEBI investigation from the Securities and Exchange Board of India (SEBI) to an SIT. The court emphasized that SEBI has completed investigations in 20 out of 22 matters and directed the regulatory body to conclude the probe in the remaining two cases within three months.
The apex court instructed the Centre and SEBI to investigate the Hindenburg report’s compliance with laws on short selling and take legal action if necessary. Additionally, the court urged them to consider the recommendations of an expert committee to strengthen the regulatory framework.
The judgment followed PILs filed in November 2023, alleging that the Adani Group inflated share prices, leading to a sharp decline after the Hindenburg Research report. The court had earlier directed SEBI to investigate potential violations of securities law by the Adani Group.
