Supreme Court sets up 6-member committee to probe Adani-Hindenburg controversy

Adani-Hindenburg saga: The Supreme Court on Thursday ordered the setting up of a 6-member committee headed by ex-apex court judge AM Sapre to probe the recent share crash of Adani Group companies triggered by the Hindenburg Research's fraud allegations. The committee besides Justice Sapre will also comprise OP Bhat, Justice JP Devdatt, KV Kamath, Nandan Nilekani and Somasekhar Sundaresan.

According to Bar and Bench, a bench of CJI DY Chandrachud, Justices PS Narasimha and JB Pardiwala said that the committee will undertake an overall assessment of the situation, including the causal factors which have led to the volatility in the securities market in the recent past. It will also suggest measures to strengthen investors' awareness.

The court said that the panel will investigate whether there has been a regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in relation to the Adani Group or other companies.

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The panel will also suggest measures to strengthen the statutory and regulatory framework and secure compliance with the existing framework concerning the protection of investors.

The apex court also directed the Centre, Sebi chairman and financial statutory bodies to render all cooperation to the panel set up for the probe.

The committee shall submit its report in a sealed cover before the Supreme Court within 2 months, the court directed.

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. Till now four PILs have been filed in the top court on the issue by lawyers M L Sharma, Vishal Tiwari, Congress leader Jaya Thakur and Mukesh Kumar, who claims to be a social activist.

Meanwhile, Gautam Adani, Chairman of the Adani Group, has welcomed the Supreme Court's order.

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

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

Adani Group stocks have taken a beating on the bourses after Hindenburg Research made a litany of allegations, including fraudulent transactions and share-price manipulation, against the business conglomerate. The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

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