After Congress, CPI(M) calls SC verdict on Adani-Hindenburg row 'disappointing'

The Communist Party of India (Marxist) polit bureau on Wednesday, stated that the verdict by the Supreme Court in the Adani-Hindenburg row earlier during the day was ‘disappointing.’ It added that the apex court did not enhance its credibility with this verdict.

"The Supreme Court judgement in the Adani case rejecting petitions for an impartial probe is disappointing and unfortunate on several grounds. A statutory body like the SEBI has not been fulfilling its mandate for expeditiously probing allegations against the Adani group," the CPI(M) said in a statement.

"In 2014, the DRI had made a reference to the SEBI on a direct charge against Adani. In 2021, the Parliament had been informed that the SEBI had been probing allegations against Adani but in its affidavit to the court, the SEBI denied such a probe," the CPI(M) added.

The CPI(M) said, "It is surprising that the court took such a denial at its face value without questioning why the SEBI has not acted on the complaints".

"Secondly, the SEBI had changed its own rules making them more opaque and to conceal who the ultimate beneficiary is. The Expert Committee set up by the Supreme Court had itself stated that SEBI’s pursuit of investigations is based on the premise that it is pursuing the ‘spirit of the law’, which flies in the face of the prospective amendments with deferred effect that SEBI has made on the legislative side," the CPI(M) added.

The CPI(M) said the Supreme Court has approved these amendments which admittedly act as a wall to conceal identities of the foreign investors' links with the “ultimate beneficiary”.

The CPI(M) added it is "most unfortunate" that the judgement has given an open license to the government to probe whether Hindenburg Research’s allegations “ignored Rules” and to take action accordingly.

"...In other words to shoot the messenger, which would jeopardise all those media outlets which had published the Hindenburg report," the party said, adding the "Supreme Court has not enhanced its credibility with this judgement".

The apex court on Wednesday refused to transfer the probe into allegations of stock price manipulation by the Adani Group to a special investigation team or the CBI, saying market regulator SEBI was conducting a "comprehensive investigation" and its conduct “inspires confidence.”

Earlier during the day, the Congress slammed the Securities and Exchange Board of India (SEBI) after the Supreme Court verdict on the Adani-Hindenburg case. The Congress accused the SEBI of its prolonged probe into the allegations of share price manipulation by Hindenburg Research against the Adani Group helmed by billionaire businessman Gautam Adani.

Senior Congress MP Jairam Ramesh took to X and wrote, "Here is our detailed statement on today's Supreme Court verdict on matters related to SEBI investigations into certain transactions of the Adani Group. Our fight for NYAY against crony capitalism and its ill-effects on prices, employment and inequalities will continue even more forcefully."

Congress MP Manish Tewari told PTI, "I have not read the SC order in detail but they have directed the SEBI to complete their investigation in two months. The fact remains that the allegations made in the Hindenburg report came into the public space a year ago and if the SEBI had been vigilant or they would have been swift, the investigation would have been completed a long time back."

The Supreme Court, on Wednesday, refused to transfer the probe into the allegations of stock price manipulation by the Indian corporate giant to a special investigation team and directed market regulator SEBI to complete its probe into two pending cases within three months.

The top court had then asked the SEBI to independently investigate the matter and constituted a committee of experts headed by former apex court judge Justice AM Sapre.

The court-appointed expert committee had in an interim report in May stated that it saw 'no evident pattern of manipulation' in Adani's companies and there was no regulatory failure.

(with PTI inputs)