Adani-Hindenburg Case Verdict Imminent, SC to Announce Shortly

Live updates on the Adani-Hindenburg case: The Supreme Court is set to announce its verdict on the Adani-Hindenburg case, a legal matter reserved since November 24. Chief Justice DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, will deliver a judgment on petitions calling for an investigation into allegations of accounting fraud and stock manipulation against Adani Group companies. This case revolved around a research report by US short-seller Hindenburg Research in January 2023.

At the heart of the controversy is Gautam Adani, the founder of the Adani Group. In addition to the verdict, the court will address measures that the Securities and Exchange Board of India (Sebi) should take to protect investors from extreme market volatility, possibly leading to the tightening of relevant regulations.

The Adani-Hindenburg case gained attention following Hindenburg Research’s report, accusing the Adani-led group of “brazen accounting fraud” and “stock manipulation.” While the conglomerate dismissed the report as “unresearched” and “maliciously mischievous,” it resulted in a substantial loss of over $140 billion in Adani Group stocks and the cancellation of a ₹20,000 crore share sale.

In March, the Supreme Court established a six-member panel, led by retired Supreme Court judge AM Sapre, to investigate regulatory failures by Sebi and alleged breaches of laws by the Adani group. The committee’s report, submitted two months later, indicated that allegations of stock price manipulation or violations of MPS norms by Adani Group companies could not be proven “at this stage.” However, red flags were raised regarding current Foreign Portfolio Investors (FPI) regulations.

In November, the top court expressed reluctance to appoint a Special Investigation Team (SIT) to probe alleged violations of MPS norms by Adani group companies without evidence of lapses by Sebi, which is already investigating the matter. The Adani-Hindenburg case remains a closely followed legal proceeding with potential implications for regulatory oversight and corporate governance in India.