Hindenburg case: India top court backs regulator clean chit to Adani Group

INDIA'S Adani Group received a huge relief on Wednesday (3) when the country's supreme court declined to order an investigation -- either by a special investigation team (SIT) or the Central Bureau of Investigation (CBI) into the allegations of manipulation of stocks brought against the conglomerate in a Hindenburg Research report.

A three-judge bench, featuring Chief Justice DY Chandrachud and Justices JB Pardiwala and Manoj Mishra, ruled out a ground to question the probe being undertaken by market regulator Securities and Exchange Board of India (SEBI).

The apex court noted that SEBI has completed its probe in 22 out of 24 cases and directed it to finish the investigation in the remaining two cases in three months' time.

The court also refused to take into account the reliance shown by petitioners on newspaper reports and the report of the Organized Crime and Corruption Reporting Report to question SEBI's probe.

"Such reports by independent groups or investigative people by newspapers may act as inputs before the SEBI of the Expert Committee. However, they cannot be relied upon as conclusive proof of the inadequacy of the investigation by SEBI," the chief justice read out from the court's judgment.

On November 24 last year, the bench reserved the judgment on public interest litigations that sought a court-monitored probe into the charges levelled in the Hindenburg Research report over alleged manipulation of stocks by the Adani group of companies.

On January 24 last year, US-based short-selling firm Hindenburg Research came up with a scathing report in which it accused the Adani Group of manipulations and malpractices for inflating its stock prices. The Indian company led by billionaire Gautam Adani vehemently refused the allegations by publishing a reply covering more than 400 pages.