Supreme Court Dismisses Review Petition on Adani-Hindenburg Controversy Investigation

Supreme Court Dismisses Review Petition on Adani-Hindenburg Controversy Investigation

New Delhi, July 15, 2024 – The Supreme Court has dismissed a review petition challenging its January 3 verdict, which refused to form a Special Investigation Team (SIT) or group of experts to investigate the Adani-Hindenburg controversy.

A bench headed by Chief Justice of India D.Y. Chandrachud, along with Justices J.B. Pardiwala and Manoj Misra, stated that there was no error apparent on the face of the record. “No case for review under Order XLVII Rule 1 of the Supreme Court Rules 2013. The review petition is, therefore, dismissed. Pending applications, if any, stand disposed of,” the bench declared.

In its detailed January 3 order, the Supreme Court had emphasized that reports from third-party organizations such as the Organized Crime and Corruption Reporting Project (OCCRP) and Hindenburg Research cannot be considered conclusive proof. The court noted that the reliance on newspaper articles or third-party reports by PIL litigants did not inspire confidence to challenge the comprehensive investigation conducted by the Securities and Exchange Board of India (SEBI).

The court reaffirmed that the facts of the case did not justify transferring the investigation from SEBI and instructed the market regulator to continue its investigation to a logical conclusion in accordance with the law.

Additionally, the Supreme Court cautioned against using unverified and unrelated material in public interest litigations (PILs), noting that pleas lacking adequate research and relying on such material tend to be counterproductive.

However, the Supreme Court had also asked the Central government to consider constructively the suggestions made by the expert panel headed by former apex court judge Justice A.M. Sapre. “The Government of India and SEBI will take any further actions as are necessary to strengthen the regulatory framework to protect investors and ensure the orderly functioning of the securities market,” the court stated.

The apex court had directed SEBI and other investigative agencies of the Union government to probe allegations of short selling that resulted in investor losses.

By upholding its previous verdict, the Supreme Court reinforces the comprehensive role of SEBI in investigating the Adani-Hindenburg controversy and emphasizes the importance of credible and verified information in PILs.