'Hindenburg's latest report created an atmosphere of doubt': Plea in Supreme Court seeks completion of probe against Adani

New Delhi: A plea has been filed in the Supreme Court, bringing on record allegations made in the latest report by the US short seller firm Hindenburg that Sebi Chairperson and her husband had stakes in offshore Bermuda and Mauritius funds, controlled by Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani.

"Though the Sebi chief, Madhabi Buch, has denied these allegation as baseless and this court also held that third party reports cannot be considered, all this has created an atmosphere of doubt in the minds of public and investors and in such circumstances, it becomes incumbent for Sebi to conclude the pending investigations and declare the conclusion of the investigation," the plea said.

In an application, advocate Vishal Tiwari, who had earlier filed the PIL, leading to the SC's order for probe into the matter, challenged the Registrar's order of August 5, which declined to register his previous application in the matter.

"This court has clearly fixed the timeline of three months (in its order of January 3, 2024) for the completion of Investigations by the Sebi. By using the word “preferably” it cannot be understood that no timeline was fixed. When specifically three months have been mentioned in the order, it is sufficient to be understood as a prudent that a fixed time period is laid down for the completion of the pending investigations," it said.

The petitioner said the interpretation of the January 3, 2024 order made in the lodgement order by the Registrar cannot be accepted as the SC's previous order itself speaks for performing a function in particular time period which he can seek compliance.

He also contended dismissal of review petition in the matter would have no bearing as the nature and grounds of review petition are totally different from the present miscellaneous application filed by him for the compliance of the order.

"It is important in the public interest and in the interest of the investors who lost their funds after the publication of Hindenburg report in 2023 against Adani group...to know about the investigations led by SEBI and its conclusions," his plea said.

It contended a new report has been published by the Hindenburg, alleging that the current Chairperson of the Sebi, and her husband Dhaval Buch had stakes in offshore funds linked to the Adani Group's alleged money siphoning scandal.

"The report cited “whistleblower documents” and it comes a year and a half after its damaging report on the Adani Group that had far-reaching consequences, including the cancellation of the company's flagship Rs 20,000 crore follow-on public offer," it said.

In its January 3, 2024 judgment, the court had then declined to order a CBI or SIT probe and said that market regulator Sebi was conducting a "comprehensive investigation" into the allegations and its conduct "inspires confidence". The court had then asked Sebi to complete its probe into allegations made by US short seller firm Hindenburg Research, against the Adani Group within three months.