The Supreme Court issued a directive on Wednesday for the Securities and Exchange Board of India (SEBI) to conclude its investigation into two pending cases involving allegations against the Adani group within three months.
A bench led by Chief Justice D Y Chandrachud clarified that it does not possess the authority to regulate SEBI’s investigative powers. They highlighted that of the 24 cases concerning allegations against the Adani group, SEBI has completed investigations in 22 cases.
The court also emphasized that the case facts did not justify transferring the investigation to a Special Investigation Team (SIT) or another agency. According to the Chief Justice, the court’s power within SEBI’s regulatory domain is restricted.
The verdict was delivered in response to a series of petitions related to the Adani-Hindenburg dispute, focusing on allegations of stock price manipulation by the Indian corporate giant. The CJI stated, “The power of the top court to enter the regulatory domain of the Securities and Exchange Board of India (SEBI) was limited.” The judgment on the Public Interest Litigations (PILs) filed by lawyers Vishal Tiwari, M L Sharma, Congress leader Jaya Thakur, and Anamika Jaiswal had been reserved since November 24 of the previous year.
The Adani Group’s stocks suffered significant losses on the stock exchanges following Hindenburg Research’s allegations, which included claims of fraudulent transactions and manipulation of share prices by the business conglomerate. In response, the Adani Group refuted the accusations, labeling them as falsehoods and asserting their compliance with all legal requirements and disclosures.
