The Securities and Exchange Board of India (SEBI) has officially given a clean chit to Gautam Adani and the Adani Group companies in connection with allegations of stock manipulation raised by Hindenburg Research. The decision follows a complete investigation and has been strengthened by judicial and institutional backing.
In January 2024, the Supreme Court declined to order a probe by either the Central Bureau of Investigation (CBI) or a Special Investigation Team (SIT), stating that there was no reason to question SEBI’s ongoing inquiry. A three-judge bench led by then Chief Justice DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, highlighted that reliance on media reports and third-party investigations such as those from the Organized Crime and Corruption Reporting Project (OCCRP) could not override the findings of a statutory regulator.
The Court’s take was further reinforced when it dismissed a review petition challenging its January verdict. During the hearings, the Supreme Court had also formed an Expert Committee to assess the broader regulatory framework and investor protection mechanisms. In its May 2023 report, the Committee concluded that there was no prima facie evidence of regulatory failure by SEBI in handling the alleged violations by Adani Group or other entities.
In a related development, the Lokpal of India dismissed three complaints against SEBI Chairperson Madhabi Puri Buch. The complaints, also rooted in the Hindenburg report, accused Buch of corruption and alleged quid pro quo arrangements with private firms. However, the Lokpal found the claims to be speculative and unsupported by credible evidence, ruling out any cognizable offence.
These developments mark a significant moment in the high-profile saga that began with Hindenburg Research’s explosive allegations in early 2023. With SEBI’s investigation upheld by both the judiciary and independent oversight bodies, the Adani Group appears to have weathered one of its most intense regulatory storms.
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Written By: Tannu Singh
Lawcutor 