Gautam Adani, Chairman of the Adani Group, expressed his satisfaction on Wednesday following the Supreme Court's decision not to transfer the investigation into the Adani-Hindenburg matter from the Securities and Exchange Board of India (SEBI) to a Special Investigation Team (SIT) or the Central Bureau of Investigation (CBI).
In a tweet, Adani stated, "Satyameva Jayate. I am grateful to those who stood by us.'"
Acknowledging the ruling as a triumph of truth, Adani conveyed his gratitude to those who supported the Adani Group during the legal proceedings. The tweet also affirmed the group's commitment to contributing to India's growth story.
"The bench, comprising Chief Justice of India DY Chandrachud, PS Pardiwala, and Manoj Misra, highlighted the limited scope of the apex court's power to intervene in the regulatory domain of SEBI."
The Supreme Court bench, delivering a relief to the Adani group, emphasised that the court's role in a judicial review is to assess whether any fundamental rights have been violated. The ruling pertains to petitions seeking a court-monitored or CBI investigation into allegations made by US-based firm Hindenburg Research against the Adani group for stock market violations.
"The court stated that there has been no regulatory failure by SEBI and the market regulator cannot be expected to carry on its functions based solely on press reports."
The apex court, while acknowledging the allegations made in the Hindenburg report, asserted that SEBI's investigative functions should not be influenced solely by media reports. SEBI was directed to conclude its investigation into two out of 24 cases within three months.
The case revolves around allegations that Adani inflated its share prices, leading to a significant decline in the share value of various Adani companies.
The Adani Group has consistently denied these allegations, characterising them as false, and maintaining adherence to all legal requirements and disclosure norms. Various petitions claimed that amendments to the Securities and Exchange Board of India Act shielded the Adani Group from regulatory oversight.
In May last year, an expert committee headed by retired Supreme Court judge Justice AM Sapre found no prima facie lapse on the part of SEBI in the matter.
While reserving the verdict, the Supreme Court underscored its trust in SEBI's investigative process.
Advocate Prashant Bhushan, representing one of the petitioners, urged the court to assess the credibility of SEBI's investigation and consider the formation of an independent organisation or an SIT if deemed necessary.
The Supreme Court's decision marks a crucial development in the ongoing legal saga surrounding the Adani-Hindenburg matter.