An expert committee has submitted its report to the Supreme Court on the sensational allegations made by the US-based Hindenburg organization against Adani Group. Hindenburg has made many sensational allegations that Adani Group has set up companies based in Mauritius and diverted funds to them, artificially increasing their prices by buying its shares from Mauritius, falsifying accounts and hiding related party transactions. Moreover, it released a report to support its allegations. As a result, Adani Group’s shares fell 70 percent from the year’s highs and later recovered somewhat.
In the wake of Hindenburg’s sensational allegations and collapse of Adani’s shares, some approached the Supreme Court. With this, Supreme Court directed SEBI to submit a report on Hindenburg’s allegations. A deadline of 2 months was given for this. Also, on 2nd March, it issued directions appointing another committee with experts. Were there violations of the Securities Act, was there a regulatory failure in the case of the Adani Group? It has been directed to suggest what steps should be taken to increase awareness among investors. The expert committee submitted its report in a sealed cover to the Supreme Court on 8th of this month. It will come up for hearing on 12th of this month before a bench headed by Chief Justice DY Chandra Chud.
On the other hand, SEBI has approached the Supreme Court to give them another 6 months to establish the facts of the allegations made by the Hindenburg organization against the Adani group. The Supreme Court has to investigate this.