‘Investigative reports can’t be taken as credible evidence of SEBI lapse’: SC relief for Adani

The Supreme Court has rejected petitions seeking a court-monitored SIT probe into the allegations part of the Hindenburg Research report about stock price manipulation by the Adani Group.

The court said its power to enter the regulatory framework of SEBI is limited. “Investigative reports by press can act as inputs for SEBI but cannot be taken as credible evidence or a proof of regulatory failure by SEBI and it cannot cast doubt on the investigation being carried on by a statutory body,” it said, in a reference to a series of media reports reiterating the allegations of the Hindenburg report, according to Bar and Bench.

Chief Justice of India DY Chandrachud also reportedly said there was no ground to transfer the probe.

A bench comprising CJI Chandrachud, Justices JB Pardiwala and Manoj Misra had reserved its order in November last year on petitions seeking a court-monitored probe. The court had earlier remarked that there was no material to doubt the investigation carried out by the Securities and Exchange Board of India. The bench also dismissed doubts about the impartiality of the members of the expert committee constituted by the court to examine the issue.

In January last year, Hindenburg Research, a US-based short-seller, published a damning report accusing the group of “brazen stock manipulation and accounting fraud” and pulling the “largest con in corporate history”.

In August last year, documents obtained by the Organised Crime and Corruption Reporting Project, and shared with the Guardian and the Financial Times, suggested alleged stock manipulation by four Adani companies between 2013 and 2017.