The Supreme will on Wednesday (May 17) Court set to hear a batch of Public Interest Litigations (PILs) by the Securities and Exchange Board of India (Sebi)'s seeking a for an extension of time to submit the report on the Adani-Hindenburg allegations. The plea will be heard by a bench led by Chief Justice of India Dhananjaya Y Chandrachud.

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The hearing on the SEBI appeal for a six-month extension to finish the inquiry in the Hindenburg Research report was earlier postponed by the top court on Monday, May 15. A three-member panel led by Chief Justice of India (CJI) Dr. DY Chadrachud adjourned the case. Due to scheduling constraints and the Monday hearing schedule, the hearing on Sebi's plea and other PILs could not take place on May 16.

Also read: Adani-Hindenburg Row Live | Supreme Court to hear SEBI’s appeal for extension today

A bench comprising Chief Justice D.Y. Chandrachud, Justices P.S. Narasimha, and J.B. Pardiwala had stated last week that they would think about giving Sebi a three-month extension rather than a six-month one to finish looking into the allegations of stock price manipulation and regulatory disclosure violations made by US-based short seller Hindenburg Research.

Sebi has already filed a rejoinder affidavit giving additional reasons for seeking more time to probe the issue.

“The application for extension of time filed by Sebi is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable,” it said.

Market regulator Sebi was supposed to file the report by May 2 but on April 29, it submitted a fresh application seeking a six-month extension for a thorough investigation into the allegations of stock manipulation and financial fraud against Adani Group.

On April 29, Sebi noted complicated transactions involving listed, unlisted, and offshore businesses that call for further inquiry in its submission to the apex court.

Sebi stated in its plea to the SC that the inquiry would take about 15 months to wrap up due to the case's complexity. However, it is attempting to wrap up the probe in six months.

“To ascertain possible violations related to misrepresentation of financials, circumvention of Regulations, and investigate the fraudulent nature of transactions mentioned in the Hindenburg report, it would take in the normal course at least 15 months,” said Sebi in its application.

After an alarming report by US short seller Hindenburg wiped out more than $140 billion of the Indian conglomerate's market value, the SC had asked Sebi to look into the allegations against the Adani group within two months and also set up a panel to consider offering protection to Indian investors on March 2.

In addition, it mandated the formation of a six-person committee with Justice A M Sapre as its chair to look into the matter.

There has been a recent controversy surrounding Sebi's plea for an extension. Jairam Ramesh, a senior Congress leader and former Union minister, criticized Sebi's position in the Supreme Court by sharing a written reply from Pankaj Chaudhary, the Union Minister of State for Finance. The reply, stated that on July 19, 2021, Sebi was investigating the Adani Group.

Prashant Bhushan, a senior advocate, mentioned that Sebi has been looking into complaints of alleged law violations by the Adani Group since 2016.

Shiv Sena leader Priyanka Chaturvedi tweeted: “Was the junior finance minister lying to the country regarding the investigation in his answer on 19 July 2021? This smells of a cover up but at whose behest?”

In July 2021, TMC MP Mahua Moitra raised a parliamentary question regarding the investigation of FPIs and/or Adani entities by SEBI, IT, ED, DRI, and MCA for suspicious transactions. The status and details of these investigations were sought, or if no investigations were underway, the reasons for it.

Also read: Hindenburg row: SEBI denies probing Adani group since 2016 in a fresh affidavit to Supreme Court

First Published:May 17, 2023 8:28 AM IST