SC rejects plea to gag media on Adani-Hindenburg issue

The plea sought a “gag order” on statements or other related news reports unless they are filed with and verified by the Securities and Exchange Board of India (SEBI).

The Supreme Court on Friday refused to pass any injunction order against media from reporting on the Adani-Hindenburg issue till the court delivers its verdict on the committee.

"We won't injunct the media...We will pronounce our order," ruled Chief Justice of India DY Chandrachud.

The interim application for restraining the media was filed by lawyer ML Sharma as part of his PIL, filed on February 3.

"Media hype has crashed the Indian share Market by more than 50 per cent. Regular allegations /statements in the media are creating panic amongst the investors who are selling their stock under panic and suffering financial losses. Common investors are being butchered which must be stopped in the interest of justice," the interim plea said.

The lawyer sought a "gag order" on statements or other related news reports unless they are filed with and verified by the Securities and Exchange Board of India (SEBI).

In his PIL, Sharma, has sought the 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 the Adani Group's stock value in the market.

Adani group is facing allegations of fraudulent transactions and share price manipulation by a US-based short-seller. However, the company has denied all the allegations as lies.

Who are Adani and Hidenburg?

Hindenburg is a research firm that gained notoriety in the financial world for its short-selling reports and investigations. Hindenburg is known for publishing reports on publicly traded companies that it believes are overvalued or have engaged in fraudulent activities.

On the other hand, Adani Group is a multinational conglomerate based in India. The company was founded by Gautam Adani in 1988 and has since grown to become one of the largest corporations in India, with interests in ports, logistics, agribusiness, energy, and real estate. Until last week, Adani was the world's third-richest man but has dropped down the ranks to number 15 on the Forbes rich list after the rout in Adani group stocks.