Gautam Adani welcomes SC’s order in Hindenburg issue

NEW DELHI-  Gautam Adani has welcomed the Supreme Court’s order to form a panel to probe the accusations of business malpractices by US short-seller Hindenburg Research on Adani Group companies.

The Supreme Court on Thursday asked markets regulator Sebi to complete an investigation into US short-seller Hindenburg’s allegations against Adani Group within two months

The Supreme Court was hearing petitions pertaining to the Hindenburg report including on the constitution of the committee relating to regulatory mechanisms to protect the investors.

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Gautam Adani on Thursday welcomed the Supreme Court order of a time-bound investigation saying this will bring finality and truth will prevail. US-based short seller Hindenburg Research has levelled allegations against Adani Group of fraudulent transactions and share price manipulation.

Gautam Adani, shortly after a bench headed by Chief Justice D Y Chandrachud passed the order, tweeted: “The Adani Group welcomes the order of the Hon’ble Supreme Court. It will bring finality in a time bound manner. Truth will prevail.”

The Adani Group welcomes the order of the Hon'ble Supreme Court. It will bring finality in a time bound manner. Truth will prevail.

— Gautam Adani (@gautam_adani) March 2, 2023

The apex court also ordered constituting an expert committee to review regulatory mechanism in view of the rout in share prices of Adani firms triggered by the Hindenburg allegations.

The committee will be headed by retired judge Justice A M Sapre. The committee conducting the investigation will also include former judges OP Bhat and JP Devdatt.

The court also appointed Somasekharan Sundaresan, veteran banker KV Kamath, and co-founder of Infosys Nandan Nilekani to the committee.

The court said the remit of the committee will be to suggest measures to strengthen frameworks, to investigate the Adani row and to suggest measures to strengthen the statutory framework.

The court has directed Sebi to ensure that all information is provided to the committee. While reserving its order, the top court on February 17 had refused to accept in a sealed cover the Centre’s suggestion on a proposed panel of experts.

Observing that it wanted full transparency for the protection of investors, the top court had also ruled out the possibility of any sitting judge overseeing the functioning of the proposed panel.