Hindenburg Report On Adani Group: Panel Headed By Former SC Judge Sapre To Probe

New Delhi: The Supreme Court on Thursday appointed a six-member expert committee headed by retired Supreme Court judge Abhay Manohar Sapre to probe the controversy surrounding India's stock market over a report by US research institute Hindenburg on the Adani Group.

A bench of Chief Justice DY Chandrachud and Justices PS Narasimha and JB Pardiwala, while passing the order for constitution of the committee, requested the panel to complete the investigation within two months and submit its report.

Members of committee

The bench appointed OP Bhat, Justice (retd) JP Deodhar, KV Kamath, Nandan Nilekani, Somashekar Sundaresan as members of the committee.

The apex court passed its order regarding the formation of the committee after hearing the petitions of advocates ML Sharma, Vishal Tiwari, Congress leaders Jaya Thakur and Anamika Jaiswal.

The bench had reserved its decision on 17 February 2023 after hearing the arguments of the concerned parties.

Passing the order, the apex court said that the committee will make a holistic assessment of the situation.

Panel to suggest measures to strengthen protection of investors

The bench also asked the committee to suggest measures to further strengthen the protection of investors in the stock market. 

The committee has also been asked to examine whether there has been regulatory failure in relation to the Adani Group or other companies in alleged violations of laws relating to securities markets.

The top court has made it clear that the probe by SEBI into the Adani group companies will continue after the Hindenburg report.

'Hindenburg' published its report on January 25, accusing the Adani Group of engaging in accounting fraud and 'brazen stock manipulation'. The Adani group, however, rejected the allegations made in that 'Hindenburg' report.

Conspiracy behind Hindenburg Report alleged

Advocates Sharma and Tiwari, who are among the petitioners, have alleged a conspiracy behind the Hindenburg Report, while Dr Thakur sought a probe into the allegations made by the US firm against Adani Enterprises.

In his petition filed before the apex court, Dr. Thakur has sought a direction to investigate the Adani group and its associate companies in the wake of the Hindenburg Research report by central agencies such as the Central Bureau of Investigation and the Enforcement Directorate, under the supervision of a sitting Supreme Court judge.

Advocate Sharma has claimed in his petition that Nate Anderson of Hindenburg Research Institute and his Indian entities entered into a criminal conspiracy and sold shares worth hundreds of billions of dollars before and after January 25, 2023. He then allegedly released a fabricated report.