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Informist, Monday, Jul 15, 2024

 

--SC junks review plea filed against Adani-Hindenburg case judgement

 

NEW DELHI – The Supreme Court has rejected a review petition filed by petitioner Anamika Jaiswal against the judgement affirming the probe of the Securities and Exchange Board of India in the Adani-Hindenburg case. The petitioner had said that there were "mistakes and errors apparent" on the face of the top court's judgement.

 

"Having perused the review petition, there is no error apparent on the face of the record. No case for review under Order XLVII Rule 1 of the Supreme Court Rules 2013. The review petition is, therefore, dismissed," said the Bench of Chief Justice of India D.Y. Chandrachud, Justice J.B. Pardiwala, and Justice Manoj Misra. 

 

On Jan 3, the Bench led by Chief Justice of India D.Y. Chandrachud had refused to give any directions or interfere with the jurisdiction of SEBI, noting that the latter's regulations do not suffer from any infirmities. The apex court had also rejected Jaiswal's demand to transfer the investigation in the case from SEBI to a Special Investigation Team.

 

The top court had heard four petitions by advocates Vishal Tiwari, M.L. Sharma, Congress leader Jaya Thakur, and by Anamika Jaiswal filed in the wake of Hindenburg's report accusing Adani Group companies of "pulling the largest con in corporate history". Shares of Adani Group companies had crashed after the US-based short seller Hindenburg Research had published its report in January 2023. 

 

Jaiswal had said there were sufficient reasons which require a review of the top court's judgement in light of certain new material received by her. The new documents and evidence, including email communications, reveal that Adani group companies have been in flagrant violation of Rule 19A of the Securities Contracts (Regulation) Rules, 1957, said the petitioner.  

 

The modus operandi involved funds being invested by two foreign investors Chang Chung Ling and Nasser Ali Shaban Ahli on behalf of Vinod Adani, a member of the Adani promoter group, into stocks of Adani Group companies through Global Opportunities Fund, Emerging India Focus Funds and Emerging Market Resurgence Fund, said Jaiswal. Of these, Emerging India Focus Fund and Emerging Market Resurgence Fund also find mention among the 13 suspected companies named in the expert committee report constituted by the top court, said Jaiswal.

 

In March 2023, the top court had formed a six-member committee headed by former Supreme Court judge A.M. Sapre to investigate allegations of stock manipulation against the Adani Group. In its report, the committee had said it could not conclude that there was regulatory failure on the part of the Securities and Exchange Board of India in the case. The apex court had also asked SEBI to submit a status report on its probe into allegations levelled against the Adani Group.

 

In the January judgement, the top court noted that SEBI had completed investigation in 20 out of 22 matters in the Adani-Hindenburg case. It had directed the market regulator to complete its probe in the remaining two cases within three months.  

 

Today, shares of Adani Enterprises Ltd ended 0.8% higher at 3,090.40 rupees on the National Stock Exchange and those of Adani Ports and Special Economic Zone Ltd ended 0.6% higher at 1,495.05 rupees.  End

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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