Adani-Hindenburg row: Congress raises eyebrows on Supreme Court's 'generous' extension of deadline for SEBI to probe

Adani-Hindenburg row: In a significant development, the Supreme Court issued a verdict today regarding various aspects of transactions involving the Adani Group. The ruling has extended the deadline for the Securities and Exchange Board of India (SEBI) to conclude its investigation into alleged violations of securities laws and stock manipulation by the Adani Group and its associates.

The original deadline of 14 August 2023 has been pushed to 3 April 2024. This decision raises eyebrows, given SEBI's failure to wrap up the investigation a full ten months after the Supreme Court's expert committee instructed it to do so.

Spotlight on Adani Group's Activities

According to the Congress party, despite the extended timeline, light had been shed on the Adani Group's questionable activities, all conducted under SEBI's purported oversight. Recent revelations include:

• 31 August 2023: The OCCRP uncovered the actual ownership details of two benami shell companies, exposing blatant violations of SEBI's minimum shareholding laws.

• 12 October 2023: The Financial Times detailed how coal trading firms linked to the Adani Group siphoned out Rs 12,000 crore through over-invoicing coal imports, violating SEBI rules.

These 'exposés' established a direct link between funds leaving Indian coal utilities and consumers and flowing into Adani Group companies, in clear violation of SEBI regulations.

Concerns Over SEBI's Progress

While the Supreme Court rightly notes that news reports cannot substitute for a proper SEBI investigation, it raises concerns that SEBI repeatedly sought extensions while the media produced expose after expose.

Beyond Securities Violations

It's essential to note that SEBI's mandate is limited to securities regulations violations. It doesn't extend to investigating broader issues, such as government manipulation in favour of Adani or misuse of investigative agencies. To address the comprehensive Modani MegaScam, a Joint Parliamentary Committee (JPC) is deemed necessary.

Upholding the Fight for Transparency

The party went on to claim that those portraying the judgement as a "clean chit" echoed similar sentiments following the Expert Committee report. The Expert Committee highlighted SEBI's constraints due to the dilution of reporting requirements in 2018 and subsequent deletion in 2019, leading to a regulatory blind spot.

"In the pursuit of truth and justice against crony capitalism, the fight for NYAY (Justice) will persist, addressing the adverse impact on prices, employment, and inequalities caused by such practices. Today's judgment does not answer the lingering questions raised in the HAHK (Hum Adani ke Hain Kaun) series, and the quest for accountability continues," said the Congress.