Supreme Court Hearing Reveals Allegations of Regulatory Favoritism in Adani Group Case
In a recent Supreme Court hearing, allegations of regulatory favoritism have emerged regarding the Adani Group, one of India’s largest conglomerates. The Securities and Exchange Board of India (SEBI) is accused of amending regulations to benefit the Adani Group, according to an affidavit filed by petitioner Anamika Jaiswal.
The petition seeks an investigation into the Adani Group following allegations made by American firm Hindenburg Research, which claimed that the conglomerate was involved in the largest con in corporate history. The Adani Group has denied these allegations.
In response, the Supreme Court had directed SEBI to conduct an inquiry and set up an expert panel to investigate possible regulatory failures related to the Adani Group. However, the panel stated that it couldn’t conclusively determine whether regulatory failures had occurred, referring to the investigation as a journey without a destination.
The latest allegations by Jaiswal highlight amendments made to SEBI regulations that allegedly provided a shield to the Adani Group, allowing their regulatory contraventions and price manipulations to go undetected. Jaiswal specifically mentioned amendments related to foreign portfolio investors (FPIs), which removed the requirement for transparency in their structures.
Furthermore, the petitioner claimed that SEBI had a conflict of interest in investigating the allegations against the Adani Group. The affidavit alleged that the daughter of Cyril Shroff, a member of SEBI’s committee on corporate governance, is married to Gautam Adani’s son, which constitutes a clear conflict of interest.
Additionally, Jaiswal accused SEBI of suppressing and concealing information related to possible stock manipulation by UAE-based entities associated with the Adani Group. The petitioner claimed that SEBI ignored an alert from the Directorate of Revenue Intelligence in 2014 and failed to investigate the matter.
The allegations against the Adani Group have raised concerns about regulatory favoritism and lack of transparency. The Supreme Court will continue to hear the case and determine whether further investigations should take place.
It is essential for regulatory bodies like SEBI to maintain impartiality and ensure the integrity of India’s financial markets. Transparency is vital to protect investor interests and maintain confidence in the system. The outcome of this case could have significant implications for the Adani Group and the regulatory landscape in India.
