SC to hear plea seeking probe into Hindenburg Research report on Adani group tomorrow

The Supreme Court on Thursday agreed to hear a plea seeking a direction to the Centre to constitute a committee monitored by a retired apex court judge to inquire and investigate into the Hindenburg Research report which has made a slew of allegations against the business conglomerate led by industrialist Gautam Adani on Friday.

Advocate Vishal Tiwari had filed a petition for the case stating the matter for urgent listing before a bench headed by Chief Justice D Y Chandrachud.

He told the bench, also comprising Justices P S Narasimha and J B Pardiwala, that a separate plea filed on the issue is scheduled to be listed for hearing on February 10, 2023.


He urged the bench that his plea be also heard on Friday along with the separate plea.

Tiwari, in his public interest litigation (PIL), has also sought directions to set up a special committee to oversee the sanction policy for loans of over Rs 500 crore given to big corporates.

Last week, another PIL was filed in the apex court by advocate M L Sharma seeking 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 Adani Group's stock value in the market.

Seven listed Adani group companies have lost more than half their market capitalisation, which shrivelled to less than $100 billion, after a report by Hindenburg Research questioned conglomerate's debt levels and use of tax havens.

Adani, whose fortunes had risen rapidly in recent years, also unexpectedly announced the withdrawal of its Rs 20,000-crore follow-on public offer (FPO), which had been successfully completed the day before. Investor mood was further jolted after the share sale was called off.

The Adani Group has rubbished the allegation of stock manipulation, saying it had "no basis" and stemmed from ignorance of Indian law. The company said over the past decade, group companies have "consistently de-levered".

The stock meltdown also marks a dramatic turn of fortune for Adani, who in recent years have forged partnerships with, and attracted investment from, foreign giants. Adani also lost his position as Asia's richest person, sliding to 17th position in Forbes' rankings of the world's wealthiest people.

Earlier, Adani was third behind Elon Musk and Bernard Arnault.