By Ritika Jain
Supreme Court on Friday said it wanted complete transparency in the Adani-Hindenburg matter while rejecting the Centre’s suggestions submitted in a sealed cover. The top court said the public must have full confidence and that it would appoint the committee which would probe how to protect Indian investors.
“We will not accept the sealed cover suggestion by you because we want to maintain full transparency,” the bench told Solicitor General Tushar Mehta. “If we accept suggestions in a sealed cover, it is like we have kept it away from the other side as people will think it is a government-appointed committee,” Chief Justice of India DY Chandrachud added.
No one should be allowed to comment on the committee or question the members, the court said. The bench comprising Justices PS Narasimha and JB Pardiwala further clarified that sitting judges would not be a part of this committee.
The apex court also reserved its verdict on pleas that sought a probe into the allegations purported in the Hindenburg report against industrialist Gautam Adani and his group of companies.
Also Read:SEBI Equipped To Handle Adani-Hindenburg Saga: Centre To Supreme Court
Cannot presume regulatory failure: SC
The top court on Friday was hearing a batch of pleas that sought a probe on the veracity of the Hindenburg Research report, a plea to make short-selling a crime of fraud, and allegations of price manipulation of Adani shares.
“I'm not concerned with any company. I'm here only because short selling is being used to crash the market,” advocate ML Sharma said.
Advocate Prashant Bhushan further sought a court-monitored committee or CBI probe into market manipulation. “There is not an iota of doubt that SEBI was involved. Complaints were issued and SEBI allowed for the [Adani] shares to shoot up 40-50 times...,” Bhushan said.
Bhushan sought a probe in the Hindenburg report. “Facts through Hindenburg report show that offshore funds were used and this effectively meant that the percentage of shares held by promoters exceeded the SEBI regulations,” he said. Bhushan stressed the importance of probing the source of funds of the shell companies which have been allegedly used to invest large sums.
“Whether there has been any corruption? What are the measures required to deal with it to strengthen regulations? Because the allegation is that there were complaints. Was LIC used to facilitate the price manipulation of Adani Shares?” Bhushan said.
However, the court said, “We can't start with a presumption of regulatory failure” adding that Bhushan’s prayers presumed guilt.
Also Read:How Can We Protect Indian Investors: SC On Adani-Hindenburg Saga
