Ashish Ranjan
On Friday, the Supreme Court proposed the formation of a team of specialists, including a judge, to study the effect of the fraud charges against the Adani Group, which have wiped off crores of investor capital and prompted heated attacks on the government by the opposition.
Chief Justice DY Chandrachud remarked, in response to a petition requesting Supreme Court action in the dispute, “Do we intervene and have a framework in place to prevent this from happening again? We do not wish to discuss policy issues. This pertains to the government.”
“We have offered an expert committee for the overall situation and examination if the Indian government is interested in this exercise,” he said, requesting the involvement of a judge and subject matter specialists.
“We have conveyed to the Solicitor General our concern regarding the regulatory process and the need to ensure that Indian investors are protected in light of the recent occurrence,” the Chief Justice said, demanding “a concise summary of the facts and applicable regulations.”
“The Solicitor General asserts that SEBI (Securities and Exchange Board of India) is making every effort to maintain vigilance. We are not casting doubt on any regulatory structure. We are having a conversation on this issue “said Justice Chandrachud.
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Tushar Mehta, the Solicitor General, said the court that he would return on Monday with a proposal after talking with the SEBI, the finance ministry, and other ministries. The SEBI is examining the situation from a regulatory standpoint, he stated.
Since the January 24 report by US-based short-seller Hindenburg Research, which accused the ports-to-energy Adani Group of improper use of offshore tax havens and stock manipulation, shares in its seven companies have lost more than $100 billion in market value. The Adani Group is controlled by billionaire Gautam Adani, one of the world’s richest people.
Adani has refuted the allegations, calling the reputational attack “maliciously mischievous.” Adani Enterprises, the group’s flagship company, withdrew its secondary share offering, India’s largest ever, due to the steep sell-off last week.
