January 2, 2024: The Supreme Court is set to announce its judgment on January 3 regarding a series of petitions related to the Adani-Hindenburg issue. The petitions seek a court-monitored investigation into allegations made by US-based firm Hindenburg Research against the Adani group, accusing them of stock market violations.
Chief Justice of India (CJI) DY Chandrachud has authored the judgment, according to the Supreme Court’s causelist.
During the hearing on November 24, the CJI-led bench reserved the pleas concerning the Adani-Hindenburg issue for orders. The bench signaled its intention to issue directions to the Securities and Exchange Board of India (SEBI). The CJI emphasized that their intervention aims to strengthen the existing regulatory framework, safeguarding investor wealth under such circumstances.
CJI Chandrachud clarified that SEBI cannot be directed to investigate based solely on media reports. He asserted that there is no evidence to doubt the credibility of SEBI’s ongoing investigation into the matter. The CJI cautioned lawyers to be responsible and make reasonable requests to the court, stating, “This is not some school debate. You are asking the Supreme Court to order an investigation without a shred of evidence. Do you know what the consequences are?”
Case Background
In January, Hindenburg accused the Adani conglomerate of “brazen stock manipulation and accounting fraud,” allegations vehemently denied by the Adani group.
Responding to a series of Public Interest Litigations (PILs), the Supreme Court formed an expert panel in March 2023 to investigate the issue and enhance the existing regulatory framework. The court granted SEBI an extension until August 14 to complete its investigation, with the regulator informing on November 24 that most of the investigation had concluded and no further extension would be sought.
