SC refuses to order SIT probe into Hindenburg case, directs SEBI to complete investigation in three months

The bench, led by Chief Justice DY Chandrachud mentioned that court’s power to enter the regulatory framework of SEBI is limited.

Written by Shivanshi Srivastava January 3, 2024

On Wednesday, the Supreme Court said that there are no concerns regarding the regulator’s ability to carry out its duties and permitted capital market regulator SEBI to carry out its probe further into the Hindenburg case. The Supreme Court further declared that no Special Investigation Team (SIT) will be tasked with looking into the case. Minutes after the development, all of the Adani group’s stocks started rising.

The expert panel concluded that there were no disparities in SEBI’s investigation, according to the top court. The bench, led by Chief Justice DY Chandrachud, further declared court’s power to enter the regulatory framework of SEBI is limited.

Additionally, it stated that the Customs, Excise & Services Tax Appellate Tribunal (CESTAT) and the group had previously rejected the accusations made against them.

The corporate behemoth Adani was accused of manipulating stock prices. The apex court declared that the matter will not be referred to a Special Investigation Team (SIT), granting the regulator an additional three months to look into the remaining two of the 24 issues. The court decided that the case’s facts did not support the transfer of investigation to SIT or any other agency.

On the Adani-Hindenburg issue, Congress MP Manish Tewari says, “The fundamental fact remains that the Hindenburg report came into the public domain exactly one year ago and since one year, SEBI has been dragging its feet on the allegations made in the Hindenburg report. If on a matter as sensitive as this, it takes one year to even complete an investigation, it just goes to show how lackadaisical the attitude of SEBI is. If SEBI wanted, it could have completed the investigation a long time back and we repeatedly raised this matter even in the Parliamentary Standing Committee of Finance.”

The Hon'ble Supreme Court's judgement shows that:

Truth has prevailed.
Satyameva Jayate.

I am grateful to those who stood by us.

Our humble contribution to India's growth story will continue.

Jai Hind.

— Gautam Adani (@gautam_adani) January 3, 2024

Reacting on Supreme Court’s verdict, Adani Group Chairman Gautam Adani said, “The Hon’ble Supreme Court’s judgement shows that: Truth has prevailed. Satyameva Jayate. I am grateful to those who stood by us. Our humble contribution to India’s growth story will continue. Jai Hind.”

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