Supreme Court Upholds SEBI’s Credibility in Adani-Hindenburg Case, Rejects OCCRP Report
In a significant win for the Adani Group, the Supreme Court dismissed the credibility of the OCCRP (Organised Crime and Corruption Reporting Project) report, stating it cannot be the basis for questioning SEBI’s (Securities and Exchange Board of India) investigation into the Hindenburg case. The judgment emphasized SEBI’s competence and rejected the need to transfer the probe to a special investigation team.
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
Chief Justice DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, delivered the verdict, highlighting the lack of grounds for an SIT investigation. SEBI had already examined 22 out of 24 cases related to Hindenburg Research’s allegations, and the court granted three months to complete the remaining two.
The Supreme Court directed the government and SEBI to investigate whether Hindenburg violated market shorting rules, emphasizing that reliance on the OCCRP report was unacceptable without verification. The judgment echoed the court’s previous stance that the Hindenburg allegations and the OCCRP report targeting the Adani Group should not be treated as unquestionable.
The petitions filed by lawyers Vishal Tiwari, ML Sharma, Congress leader Jaya Thakur, and activist Anamika Jaiswal claimed the Adani Group manipulated share prices based on Hindenburg Research’s report. However, the court asserted that petitions lacking adequate research and relying on unsubstantiated reports cannot be accepted.
The Adani Group welcomed the judgment, labeling the OCCRP report as a “malicious combination of selective misinformation.” The Supreme Court’s decision underscores SEBI’s authority and aims to strengthen regulatory mechanisms for the benefit of Indian investors.