Adani fraud: SC rejects Centre's sealed-cover suggestion on panel
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New Delhi: The Supreme Court on Friday rejected the Union government's sealed-cover submission on a panel to strengthen regulatory measures and back investors in view of Adani's collapse. The court demanded complete transparency in the matter, NDTV reported.
Last week, the apex court demanded suggestions for the formation of a panel of experts to examine the fallout Adani Group experienced following the fraud allegations levelled against it. The allegations posed by Hindenburg Research resulted in the wiping out of crores in investor wealth as well as triggering the opposition to issue a severe attack on the Centre.
On Friday, the top court reserved its order on forming the committee. The court was hearing a group of petitions which demanded it's an intervention in the matter.
The government had concurred with initiating an investigation into Hinderburg Research's report but gave a list of names to the court to form the panel.
The Chief Justice of India, DY Chandrachud, demanded that the court need not sealed cover but full transparency.
"…... if we accept [these] suggestions, then it will be seen as a government-appointed committee, which we do not want. Leave it to us to decide," NDTV quoted the CJI.
One of the petitioners informed the court that they wanted a proper valuation of the loans provided to the Adani Group by different banks. The petition also demanded an audit o Adani companies. Meanwhile, another petitioner called for action against Hindenburg Research.
The government's counsel at the Court, Tushar Mehta, informed the court that the government is not objecting to an investigation of the Adani Group or the Hindenburg report. The lawyer said that SEBI (Securities and Exchange Board of India) and all regulatory bodies had discharged their duties.
The Hindenburg Research accused the Adani Group of improper use of offshore tax havens and stock manipulation. Publication of the report resulted in shares of Adani Group's seven companies falling, losing more than $100 billion in market value.
But Adani denied all the accusations and termed the report a calculated securities fraud under applicable law.