New Delhi: The Supreme Court on Thursday formed a committee to examine the controversy following American short-seller Hindenburg Research’s damning report against the Adani Group.
The committee, headed by retired top court justice A.M. Sapre, should submit its report in a sealed cover within two months, a bench of Chief Justices D.Y. Chandrachud, P.S. Narasimha and J.B. Pardiwala directed.
The other committee members are retired justice J.P. Devdatt, O.P. Bhatt, Nandan Nilekani, K.V. Kamath and Somasekharan Sundaresan.
The top court said the remit of the committee would be to suggest measures to strengthen the statutory framework, and to investigate the Adani row. It also directed the Securities and Exchange Board of India (SEBI) to ensure that all information was provided to the committee.
Noting that the SEBI was already investigating the allegations against the conglomerate made in Hindenburg’s 24 January report, the justices also asked the regulatory body to look into violations if any and whether there was manipulation of stock prices.
The bench clarified that constituting the committee would not hamper the independence of SEBI and its own probe.
On 17 February, the top court had refused to accept a “sealed cover” suggestion by the Centre on the appointment of this committee, saying it wanted full transparency.
The Adani Group, meanwhile, lauded the Supreme Court order, saying that “truth would prevail”.
Group Chairman Gautam Adani tweeted: “The Adani Group welcomes the order of the Hon’be 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
Over the past month, the market value of the Adani Group has diminished significantly, following allegations of financial malfeasance.
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