Adani-Hindenburg Row: Petitioner Seeks Early Hearing in SC

A petitioner in the matter concerning the Hindenburg report on the Adani Group has requested an early listing and subsequent hearing before the Supreme Court on Monday.

Advocate Prashant Bhushan, representing one of the petitioners, informed the top court that the matter was initially scheduled for a hearing on August 28 but has been deferred and not rescheduled.

A bench headed by Chief Justice of India DY Chandrachud stated that it will direct the registrar to review the matter and advised the lawyer to bring it up again tomorrow, assuring further consideration.

Previously, the Securities and Exchange Board of India (SEBI) submitted a status report to the Supreme Court, updating it on the progress of investigations stemming from the Hindenburg report. Out of the 24 investigations initiated as per the top court’s order dated March 2, 2023, SEBI has concluded 22 investigations, with two remaining as interim inquiries.

In May, the Apex Court granted an additional three months to SEBI to complete its investigation into the Hindenburg report. The court had initially directed SEBI to investigate potential securities law violations by the Adani Group following the report, which had caused a significant drop in the Adani Group’s market value, exceeding USD 140 billion.

On March 2, the Supreme Court had established an expert committee to address issues arising from the Hindenburg Research report on Adani Group companies. This committee, comprising six members and headed by former Supreme Court judge Justice AM Sapre, was tasked with the investigation.

At that time, the apex court had also instructed SEBI to file a status report within two months. The court was addressing petitions related to the Hindenburg report and the formation of a committee to regulate mechanisms for safeguarding investors’ interests.

The Hindenburg report, dated January 24, had made allegations of stock manipulation and fraud against the conglomerate. In response, the Adani Group criticized Hindenburg as an “unethical short seller,” asserting that the report from the New York-based entity was unfounded. Short sellers in the securities market profit from subsequent declines in share prices.