The Supreme Court of India Rejects SIT Formation in Adani Verdict
The Supreme Court of India has declined to form a Special Investigation Team (SIT) to probe allegations made by American short-seller Hindenburg against the Adani Group. However, the court has directed the Securities and Exchange Board of India (SEBI) to complete its investigation into the two pending cases against the Gautam Adani-led conglomerate within the next three months. The Chief Justice of India, DY Chandrachud, stated that the court cannot regulate the investigatory powers of SEBI and highlighted that the regulatory body had already completed its probe into 22 out of the 24 cases related to Hindenburg’s allegations.
In its verdict on a range of petitions concerning accusations of stock price manipulation by the conglomerate, the court concluded that the facts of the case did not necessitate transferring the investigation to an SIT or any other probing agency.
CJI Chandrachud emphasized the limited power of the court to intervene in SEBI’s regulatory domain.
The Adani Group has vehemently refuted the allegations, labeling them as lies.
The Supreme Court further added that both SEBI and the central government could investigate any potential violations of the law by the Hindenburg report on short-selling.
The court clarified, Hindenburg or any other such report cannot be the basis for ordering a separate investigation.
Additionally, the court cautioned against filing petitions lacking thorough research and relying on unverified material, as it can be counterproductive to public interest jurisprudence.
The Supreme Court urged both the government and SEBI to consider taking action based on the recommendations put forth by the court-appointed panel.
It stated that there was no evidence to suggest that SEBI had been negligent in its actions.
The reliance on the OCCPR report is rejected, and relying on a third-party organization’s report without any verification cannot be considered as proof, the court stated, as reported by Live Law.
With this verdict, the Supreme Court has provided clarity on the allegations levelled against the Adani Group. While dismissing any requirement for an SIT, the court has urged SEBI to diligently complete its ongoing investigations. As the legal battle ensues, the Adani Group continues to maintain its innocence, vowing to address the allegations head-on. Only time will reveal the ultimate outcome of this high-profile case that has captured significant attention in India and abroad.
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