Supreme Court gives market regulator three more months to complete Adani inquiry

The investigation comes after US firm Hindenburg Research alleged that the Adani Group was pulling off the ‘largest con in corporate history’.

May 17, 2023 - 18:30

Supreme Court gives market regulator three more months to complete Adani inquiry

The Supreme Court on Wednesday granted the Securities and Exchange Board of India additional time till August 14 to complete its investigation into the allegations of stock manipulation by the Adani Group, reported Live Law.

In March, the Supreme Court had asked the regulator to conduct an inquiry after American firm Hindenburg Research in a report on January 24 alleged that billionaire Gautam Adani’s group was pulling off the “largest con in corporate history”.

It company claimed that the conglomerate has been involved in accounting fraud, improper use of tax havens and money laundering. The Adani Group has rejected these allegations but the report still pummeled the stocks of the conglomerate’s listed companies.

After this, the judges had asked the regulator to submit a report by May 2.

But on April 29, the market regulator had asked for a six-month extension to complete its probe into possible lapses by the Adani Group. It sought more time citing complex transactions involving the conglomerate’s listed, unlisted and offshore entities.

At Wednesday’s hearing, a bench comprising Chief Justice of India DY Chandrachud and Justices PS Narasimha and JB Pardiwala asked SEBI to file a status report on its investigations against the conglomerate.

Solicitor General of India Tushar Mehta, appearing for SEBI, urged the court to re-consider the August deadline.

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