Introduction: A new plea has been filed in the Supreme Court concerning the Adani-Hindenburg matter. The plea requests the formation of a new expert committee.
Key points about the investigation into the Adani-Hindenburg case
1.Details of Adani-Hindenburg’s petition
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- The plea, filed on Monday in the Supreme Court, seeks the formation of a new expert committee.
- It emphasizes the inclusion of individuals with a spotless reputation and no prior connections to the Adani-Hindenburg case, ensuring no conflicts of interest.
- The committee should also involve experts related to finance, law, and the stock market.
- The hearing for this plea may take place on 13th October.
2. Background of the Case
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- The petition was filed by Anamika Jaysawal through her lawyer Ramesh Kumar Mishra.
- On 24th January 2023, the American short-seller company Hindenburg Research had levied accusations ranging from money laundering to share manipulation against the Adani Group.
- For the investigation of this matter, the Supreme Court had previously formed a six-member committee.
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3. Committee Members
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- The committee was headed by retired judge A.M. Sapre. Other members included Justice J.P. Devadhar, O.P. Bhatt, M.V. Kamath, Nandan Nilekani, and Somashekhar Sundaresan.
- This committee made their investigation report public on 19th May 2023.
4. Concerns raised in Adani-Hindenburg new petition
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- Questions have been raised regarding the involvement of O.P. Bhatt, K.V. Kamath, and Somashekhar Sundaresan in the expert committee due to potential conflicts of interest.
- O.P. Bhatt is the chairman of Renewable Energy Limited company Greenko, which has been in close partnership with the Adani Group since March 2022.
- K.V. Kamath, former chairman of ICICI Bank from 1996 to 2009, has been named in a fraud case related to Chanda Kochhar.
5. Developments after Hindenburg’s Report
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- Four public interest litigations were initially filed.
- Manohar Lal Sharma’s plea demanded an investigation against Hindenburg Research’s founder, Nathan Anderson, and his associates in India.
- Vishal Tiwari had requested an investigation of the Hindenburg report by a committee headed by a retired SC judge.
- Jaya Thakur expressed concerns about the roles of the Life Insurance Corporation (LIC) and State Bank of India (SBI) in this matter.
- Mukesh Kumar demanded an investigation from authorities like SEBI, ED, the Income Tax department, and the Directorate of Revenue Intelligence.
- On 2nd March 2023, the Supreme Court formed a six-member committee to look into the matter.
6. SEBI’s Investigation
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- The committee asked SEBI to investigate potential violations of the Securities Contract Regulation Rules, specifically rule 19(A), related to minimum public shareholding.
- Hindenburg Research’s report alleged Gautam Adani’s brother, Vinod Adani, manages shell companies overseas, transferring billions of dollars to listed and private companies in the Adani Group in India.
- The Supreme Court granted SEBI additional time until 14th August for its investigation, although SEBI had initially been given two months, i.e., until 2nd May.
Conclusion: The Adani-Hindenburg case remains complex, with various entities raising concerns and demanding thorough investigations. It will be crucial to see how the Supreme Court responds to the recent plea and what directions it provides.
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