Adani Row: Plea Filed In Supreme Court Against Short Seller, Alleging Criminal Conspiracy

A petition has been filed in the Supreme Court against the founder of Hindenburg Research, Nathan Anderson over short selling, alleging that the short seller hatched a criminal conspiracy and it needs to be probed.

The PIL has been filed by advocate Manohar Lal Sharma in the Supreme Court, who alleged that the Hindenburg Research founder has admitted the short selling and this needs to be investigated.  

According to the petition, it has been alleged that the founder of Hindenburg Research and its Indian entities have hatched a criminal conspiracy and this needs to be probed. Hindenburg's short selling revolves around billions of dollars prior to and thereafter and has released a concocted view. 

Petition to be heard by the Supreme Court

The petitioner has clearly mentioned that an inquiry needs to be done on the alleged exploitation of the investors via short selling. Now, it is on the top court, whether the petition will be heard or not. 

As far as the role of Hindenburg Research is concerned, this is not the first time, that such papers, referred to as investigative reports, have been published. In the past too, certain big US companies had come under the scanner of Hindenburg Research and through such reports, the short seller has allegedly made a massive amount of money.

They claim the report to be the product of two years of investigation. However, it has not been able to identify, exactly how they have come to certain conclusions. Reportedly, they haven't made any specific mention with regards to the tax savings done, which they are referring to, or the companies, they are alleging of having criminal track records, linked with the Adani Group. 

Advocate Swapnil Kothari of the Supreme Court said, "The petition filed in the Supreme Court appears to be very sketchy. If there are any financial irregularities in context with the SEBI Act, then SEBI is to look out for it. The petition may have some certain facts to support the allegations of short-selling ideas, but SEBI has to take care of what is going on in the Corporate world." 

The short point is any financial irregularities to the provisions of the SEBI Act, it is to be looked out for. But, it feels the petition will be dismissed in the Supreme Court, having a lack of specific facts and terms, which establish the allegations, as the context mentioned in the petition, do not warrant the action in the case. The petitioner will have to come out with more details and mention some focused facts of public importance, ignore and align some terms which establish criminal conspiracy into the matter, added advocate Kothari. 

He also asserted that SEBI needs to come up first before the top court into the matter, but, the petitioner seems aggrieved by SEBI and has come up to the Supreme Court. However, he will have to present and establish the facts that SEBI didn't act in the matter and that's why he has come up to the court. -