India's Top Court Refuses New Fraud Probe into Adani Group
India's Supreme Court on Wednesday refused to establish a panel to aid an ongoing probe by the country's market regulator into allegations of fraud by billionaire Gautam Adani's business group....
Facts
- India's Supreme Court on Wednesday refused to establish a panel to aid an ongoing probe by the country's market regulator into allegations of fraud by billionaire Gautam Adani's business group.1
- Instead, the court gave the Securities and Exchange Board of India (SEBI) three months to complete its investigations into short seller Hindenburg's reports of “brazen stock manipulation and accounting fraud scheme' by Adani.2
- In March 2023, the Indian Supreme Court ordered SEBI to probe the alleged violations by Adani, as well as set up a six-member panel headed by a former judge to look into the matter. Adani has denied all charges.3
- In May 2023, the court-appointed panel concluded there was no failure on SEBI's part. The market regulator has so far probed 22 of the 24 allegations made by the US-based Hindenburg firm.4
- On Monday, the Supreme Court said there was no valid ground to doubt the SEBI probe, dismissing newspaper reports and third-party inferences as credible evidence.5
- Following Wednesday's ruling, Adani tweeted: “Truth has prevailed.” He also thanked those who had supported him during the crisis, claiming that 'India's growth story will continue.'6
Sources: 1BBC News, 2The Indian Express, 3Mint, 4NDTV Profit, 5Hindustan Times and 6CNN.
Narratives
- Pro-establishment narrative, as provided by NDTV.com. SEBI is a competent and well-respected authority, and Hindenburg's allegations should not be taken at face value. The Supreme Court's own panel has reiterated its confidence in India's market regulator and, in this case, the agency must be allowed to do its job. If Adani's has engaged in illegal behavior, SEBI will expose the group and act against them. Neither overenthusiastic litigation nor a witch hunt is the answer.
- Establishment-critical narrative, as provided by The Indian Express. There is more than enough evidence pointing to regulatory lapses on SEBI's part. India's money laundering watchdog had informed the market regulator of several shady transactions in the run-up to Hindenburg's disclosures, but nothing was done. The situation is further clouded by the fact that a former SEBI chief has joined an arm of Adani's company. The institution's very integrity is under question.
