Adani-Hindenburg row: Expert panel submits report to Supreme Court

Even as the political circles are grappled with the Assembly elections in Karnataka, another development has raised their curosity. The 6-member expert panel, set up by the Supreme Court following the publication of the controversial Hindenburg report on the Adani Group, has submitted a report in a sealed cover to the court on Monday.

As per reports, the matter has now been listed for hearing before the Bench of Chief Justice of India D.Y. Chandrachud on Friday. However, it is not yet clear whether the panel has sought any extension or submitted the final report. "It is not known whether the committee has completed its investigation into all the issues pointed out by the top court in its March 2 order, or whether it has also sought further time to conclude its findings," reported Economic Times.

The outcome of the investigation by the expert panel and Sebi will be closely watched by investors and stakeholders as well as the political circles as it has assumed high political overtones with the Opposition parties, especially Congress, accusing Prime Minister of having close links with the group.

The apex court had ordered for the setting up of the six-member committee, headed by former SC judge Justice A.M. Sapre, for the assessment of the existing regulatory framework in the wake of the allegations levelled by US-based short-seller Hindenburg Research in its report.

On February 17, the apex court had rejected the names suggested by the Union government in a sealed cover as members of the committee, and announced the formation of its won expert committee. The panel also comprises former bankers K.V. Kamath and O.P. Bhatt, Infosys cofounder Nandan Nilekani, securities lawyer Somasekhar Sundaresan and retired High Court judge J.P. Devadhar.

The panel was mandated to make recommendations to strengthen regulations and to protect Indian investors against the volatility of the kind which has been witnessed in the recent past.

The court had also directed the Security and Exchanges Board of India (Sebi) to investigate any violations of securties law by the Adani Group as claimed in the Hindenburg report. The Sebi chairperson had briefed the expert committee on the matter on April 2 and 26.

The court had asked both Sebi and the panel to complete their probes within two months but Sebi had last week sought a 6-month extension to complete its probe.

Meanwhile, the share prices of the Indian conglomerate, including that of Adani Transmission, Adani Power and Adani Total Gas, traded quite low. However, the scrips of the holding company of the group Adani Enterprises were quoted higher in the intra-day trading on the bourses, according to reports.

Publication of the Hindenburg report had led to a significant drop in the Adani Group's stock prices. The claims included stock price manipulation and fraudulent activities. The Gautam Adani-led organization denied the accusations and claimed that it complies with all legal and disclosure standards.