Plea in SC seeks constitution of committee to probe Hindenburg Research report on Adani Group

NEW DELHI, (PTI): A plea has been filed in the Supreme Court seeking a direction to the Centre to constitute a committee monitored by a retired apex court judge to enquire and investigate into the Hindenburg Research report which made a slew of allegations against the business conglomerate led by industrialist Gautam Adani.

The fresh public interest litigation (PIL), filed by advocate Vishal Tiwari, has also sought directions to set up a special committee to oversee the sanction policy for loans of over Rs 500 crore given to big corporates.

Last week, another PIL was filed in the apex court seeking prosecution of short seller Nathan Anderson of US-based firm Hindenburg Research and his associates in India and the US for allegedly exploiting innocent investors and the ”artificial crashing” of Adani Group’s stock value in the market.

The Adani Group stocks have taken a beating on the bourses after Hindenburg Research made a litany of allegations including fraudulent transactions and share-price manipulation against the business conglomerate led by Gautam Adani.

The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

In his plea, Tiwari has said the petition depicts the ”drastic condition and fate of people” when there arises a situation of share fall in the securities market due to various reasons.

”Lots of people who had the whole lifetime saving in such stocks get a maximum setback due to fall in such shares with a huge amount of money getting into drain,” the PIL said.

It said with the recent news of the publication of the Hindenburg report, it has led to the loss of huge amount for various investors who have invested their life-saving in such shares.

”In the aftermath of an unprecedented attack on billionaire Gautam Adani’s vast empire by Hindenburg, the market value of all 10 Adani stocks have halved with investors sitting with a colossal loss…,” the plea said.

It claimed that no concrete steps have been taken by authorities on the issue despite a ”massive attack being perpetrated” on the country’s economy.

”It is ultimately the public money for which the respondents (Centre and others) are answerable and there needs to be strict concern for mitigating of such loans with a clear process and sanction policy for such high stake loan amount,” it said.

The plea has made the Centre and others, including the Reserve Bank of India and the Securities and Exchange Board of India, as respondents. (PTI)