Advocate Tiwari's initial application sought an independent investigation into allegations raised by Hindenburg Research against the Adani Group. In January 2023, Hindenburg Research published a report accusing the conglomerate of engaging in stock manipulation and accounting fraud over several decades. The report led to a significant decline in the market value of Adani's companies, erasing over $100 billion. The Adani Group has consistently denied these allegations, labeling them as baseless and an attack on India's economic growth.
Following the publication of the Hindenburg report, multiple petitions were filed in the Supreme Court, calling for comprehensive investigations into the claims. In response, the Court directed the Securities and Exchange Board of India (SEBI) to conduct a thorough inquiry. SEBI was initially given a two-month timeframe, which was later extended, to examine the allegations and submit its findings.
In May 2023, a committee appointed by the Supreme Court reported that, based on the information available, there was no evidence of regulatory failure concerning the accusations of stock price manipulation by the Adani Group. The committee noted that SEBI's investigation did not reveal any conclusive proof of wrongdoing.
Advocate Tiwari's subsequent application challenged the registrar's refusal to list his plea, which sought further scrutiny into the matter. The Supreme Court's dismissal of this application reinforces its earlier stance, relying on the findings of the SEBI investigation and the committee's report.
The Adani-Hindenburg controversy has been a focal point of discussion in financial and legal circles, given its implications for corporate governance and regulatory oversight in India. The Supreme Court's recent decision underscores the judiciary's reliance on regulatory bodies like SEBI to address complex financial disputes.
As the situation develops, stakeholders continue to monitor the actions of regulatory authorities and the judiciary to assess the broader impact on India's corporate landscape. The Adani Group maintains its stance, asserting that all transactions and operations comply with applicable laws and standards.