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Informist, Monday, Mar. 17, 2025

 

NEW DELHI – The Bombay High Court on Monday discharged Adani Enterprises Ltd., its chairman Gautam Adani and managing director Rajesh Adani in a cheating and criminal conspiracy case filed by the Serious Fraud Investigation Office relating to former stockbroker Ketan Parekh. The investigating agency had alleged that entities connected with Ketan Parekh made unlawful gains of about INR 1.51 billion and the promoters of the Adani group made gains of about INR 3.88 billion from transactions in shares of Adani Enterprises.

 

"Upon a careful evaluation of the submissions and the records, it becomes evident that the complaint fails to satisfy the essential ingredients of the offence of cheating under Section 420 of the IPC (Indian Penal Code)," said the high court. The high court said the additional sessions judge had also categorically acknowledged that the complaint lacks any assertion from any member of the public that they were deceived or induced, whether fraudulently or dishonestly, to part with their money or shares as a result of alleged price manipulation. 

 

"Merely by asserting that the accused has made a wrong gain without demonstrating the corresponding wrongful loss or deception suffered by a specific victim does not suffice to attract the offence of cheating under the IPC," said the court. Given that the foundational charge of cheating is not made out, the ancillary charge of criminal conspiracy under Section 120B of the Indian Penal Code, which presupposes the existence of a substantive offence, also becomes unsustainable, the court said.

 

The Serious Fraud Investigation Office under the Ministry of Corporate Affairs had filed the case in 2012, alleging that Ketan Parekh entered into a criminal conspiracy with Adani Enterprises (formerly known as Adani Exports) and its associates and subsidiaries to artificially and unlawfully manipulate the share prices of the company causing unlawful gains to the promoters of the Adani group. 

 

The investigating agency had said the promoters of the Adani group made unlawful gains by providing funds to Ketan Parekh entities for artificially manipulating shares of the company. 

 

In 2019, an additional sessions judge in Mumbai had set aside an order by the additional chief metropolitan magistrate to discharge Adani Enterprises, Gautam and Rajesh Adani in the case. Challenging these, Adani Enterprises, Gautam and Rajesh Adani moved the high court.

 

On Monday, the shares of Adani Enterprises ended 1.4% higher at INR 2,252.70 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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