The Supreme Court is set to announce its judgment today on various pleas urging an inquiry into accusations of accounting irregularities and stock tampering against companies within the Adani conglomerate. The allegations surfaced in a research report by US short-seller Hindenburg Research in January 2023, triggering significant market turbulence.
Around 10 AM today, Adani Group’s stocks experienced a notable surge, showcasing a robust performance in the morning trading session. Adani Power saw a 5% uptick, while Adani Total Gas recorded an impressive 10% increase. Adani Green Energy also displayed a substantial rise, marking a gain of 7.77%. Adani Enterprises and Adani Ports joined the rally, showing gains of 6.89% and 4.91%, respectively.
Chief Justice DY Chandrachud, who will deliver the verdict alongside Justices JB Pardiwala and Manoj Misra, has been examining the case since November 24, when arguments concluded. The court will also address measures recommended to the Securities and Exchange Board of India (Sebi) to safeguard investors from drastic market fluctuations and to enhance relevant regulations.
In the midst of this legal scrutiny, the Adani group, led by founder Gautam Adani, vehemently dismissed Hindenburg’s report as “unresearched” and “maliciously mischievous.” Despite the conglomerate’s denial, the publication of the report resulted in a substantial decline in Adani group stocks, causing a staggering loss exceeding $140 billion and the cancellation of a ₹20,000 crore share sale.
Earlier this year, the Supreme Court formed a six-member panel headed by retired judge AM Sapre to investigate regulatory oversights by Sebi and alleged legal violations by the Adani group. In their report submitted two months later, the committee expressed uncertainty in proving stock price manipulation or violations of norms by Adani group companies “at this stage.” However, it highlighted concerns about existing Foreign Portfolio Investors (FPI) regulations.
In a November observation, the apex court indicated reluctance to appoint a Special Investigation Team (SIT) to probe alleged violations by Adani group companies without concrete evidence of Sebi lapses. The regulatory body had already been conducting an inquiry into the matter, adding another layer of complexity to this intricate case.
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