The Supreme Court is set to deliver its verdict on Wednesday in a series of petitions seeking an investigation into fraud allegations against the Adani Group, following the Hindenburg Research report. The bench, comprising Chief Justice of India DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, had reserved the verdict in November last year.
The case revolves around accusations that Adani inflated its share prices, leading to a significant drop in the share value of various Adani companies, reportedly amounting to $100 billion, after the publication of the Hindenburg Research report. Several petitions were filed before the Supreme Court, including one asserting that amendments to the Securities and Exchange Board of India Act (SEBI Act) had provided a "shield and an excuse" for the Adani Group's regulatory violations and market manipulations to go undetected.
In response to the petitions, the Supreme Court directed SEBI to conduct an independent investigation into the matter and formed an expert committee led by retired Justice AM Sapre to examine the issue. The committee's report, released in May, found no prima facie lapse on the part of SEBI in the matter.
During the November 24, 2023 hearing, Solicitor General Tushar Mehta argued that media reports were being "planted" to influence India's actions, citing a growing trend of stories being planted outside India to sway decisions within the country. The court noted that SEBI cannot be expected to rely solely on media reports in its decision-making process. The impending verdict is expected to shed light on the outcome of the investigation and its potential implications for the Adani Group.