Adani-Hindenburg case: SC to deliver verdict today on petitions seeking probe into stock market violation allegations

SC to pronounce judgment in Adani-Hindenburg case today

The Supreme Court (SC) will pronounce its judgment today on a series of petitions related to the Adani-Hindenburg matter. The petitions seek a court-monitored investigation into allegations raised by the US-based firm Hindenburg Research against the Adani group of companies, concerning stock market violations.

According to the Supreme Court's causelist (list of cases for the day) the judgment is authored by Chief Justice of India (CJI) DY Chandrachud.

On November 24, the CJI led bench reserved the pleas pertaining to the Adani-Hindenburg issue for orders. During the course of the hearing the bench indicated that they will pass some directions to markets regulator SEBI. Through the hearing, the CJI maintained that they decided to interfere in the issue only to ensure that the existing regulatory framework is strengthened to protect loss of investor wealth under these circumstances.

Furthermore, the CJI told the lawyers appearing in the batch of petitions pertaining to the Adani-Hindenburg row that the Securities Exchange Board of India (SEBI), cannot be asked to investigate something based on media reports.

CJI also noted that there is no material on record to doubt the credibility of SEBI's investigation on the issue.  Chandrachud also warned the lawyers appearing for the petitioner to be responsible and make reasonable requests to the court in cases like this only when they have evidence. He said "As lawyers, you should be responsible with what you’re asking. This is not some school debate. You are asking the Supreme Court to order an investigation against SBI and LIC without a shred of evidence? Do you know what the consequences are?"

Case history

Hindenburg in January accused the Ahmedabad-based ports-to-power conglomerate of “brazen stock manipulation and accounting fraud”, allegations that the Adani group has vehemently denied, calling the report “a calculated attack on India”.

After receiving a flurry of PILs on the issue, SC in March 2023, formulated an expert panel to look into the issue and also come up with suggestions to enhance the existing regulatory framework. SC gave SEBI time till May to complete the investigation into the allegations.

In May, the apex court had granted Sebi an extension until August 14 to conclude its investigation. The extension was, however, shorter than the six months time sought by the markets regulator to complete the investigation. On November 24, SEBI told the court that it would not be seeking any extension of time and that most of the investigation had concluded.