SC to give verdict on Adani-Hindenburg petitions today

A Supreme Court bench led by Chief Justice of India DY Chandrachud is scheduled to deliver orders on public interest litigations (PILs) related to the impact of the Hindenburg report on the Adani Group. The court had reserved its order on February 17 regarding the batch of PILs.

It is expected that the court will appoint a committee to strengthen the existing regulatory mechanism, which would protect investors from market volatility. The committee members will also be nominated by the court, and its scope of functioning will be drawn up.

During the hearing on February 17, Solicitor General Tushar Mehta circulated a sealed cover containing the suggested names for the committee and the scope of its work to examine stock market regulatory mechanisms after Adani company stocks crashed following the Hindenburg Research report on the group. However, the Supreme Court rejected the government's offer to maintain transparency and not give the impression that the committee is government-appointed.

The court reserved its orders on public interest litigations (PILs) related to the impact of the Hindenburg report on the Adani Group. The Solicitor General stated that the government's objectives were to ensure that the truth comes out and a holistic view of the issue is taken while ensuring that the market is not affected in the process.

Chief Justice of India DY Chandrachud stated that the suggestion made by the Solicitor General to submit the names of committee members and its scope of work in a sealed cover was rejected to maintain transparency. He added that submitting in a sealed cover would give the impression that it was a government-appointed committee, despite being appointed by the Supreme Court.

On February 10, the Supreme Court directed the Securities and Exchange Board of India (SEBI), the market regulator, to suggest measures that could be implemented to protect Indian investors from market volatility like that which occurred after the release of the Hindenburg report on January 24.

PILs filed in SC:

The court subsequently heard and reserved the orders on two PILs filed on the Adani-Hindenburg controversy.

The PIL filed by lawyer Vishal Tiwari stated that the government has not taken any concrete action so far, despite the Hindenburg report perpetrating a massive attack on the economy of the country.

Tiwari’s PIL seeks a committee under a retired Supreme Court judge to look into the Hindenburg report that alleged unfair practices by the conglomerate.

Another PIL filed by ML Sharma demands that short-selling be made an offence and that US short-selling firm Hindenburg Research founder Nathan Anderson and his associates be prosecuted.

It also sought an investigation against Anderson and his associates in the US and in India for allegedly exploiting innocent investors and the “artificial crashing” of the valuation of Adani Group companies in the stock market

A third PIL was filed by Congress leader Dr Jaya Thakur.