Saturday, 23 Sep, 2023


India Supreme Court sets up panel to probe Adani fraud allegations

Business Desk |
Update: 2023-03-02 15:49:43
India Supreme Court sets up panel to probe Adani fraud allegations [Photo Collected]

India's Supreme Court has set up an independent panel to investigate a US research firm's allegations of fraud against billionaire Gautam Adani's business empire.

Hindenburg Research had accused Adani Group firms of stock manipulation and financial fraud in a report in January, sending its shares into a sharp fall.

The group has denied the allegations.

But the incident sparked a political row, with opposition leaders demanding an investigation into the claims.

On Thursday, the Supreme Court appointed a five-member panel to investigate the allegations.

The committee, which will be headed by former judge Abhay M Sapre, has been asked to give its report in two months.

Minutes after the verdict, Mr Adani tweeted that his companies welcomed the court's decision, which he said, would "bring finality in a time bound manner".

"The truth will prevail," Mr Adani added.

The three-judge bench headed by Chief Justice Dr DY Chadrachud was hearing a bunch of pleas - filed by lawyers and politicians - seeking a probe into the Adani Group after Hindenburg Research accused it of decades of "brazen" stock manipulation and accounting fraud.

During the last hearing, the court refused to accept names of experts for the committee suggested by the federal government, saying it wanted to "maintain full transparency" in the case."If we take names from the government, it would amount to a government-constituted committee. So we will appoint the committee and appoint members on our own," Justice Chandrachud had said.

The Adani Group's companies have seen more than $100bn (£82bn) wiped off their market value over the past few weeks after the allegations triggered a financial meltdown in Indian markets.

The group has dismissed the allegations as malicious and untrue, calling them an "attack on India". But the response has failed to stop the fall in Adani shares.

Mr Adani, the founder, has fallen out of the top 10 richest persons in the world. According to the Forbes real-time billionaires list, Mr Adani is now the 15th-richest, with a net worth of $74.7bn. He was third on the list last month.

Mr Adani is perceived as being close to Prime Minister Narendra Modi and has long faced allegations from opposition politicians that he has benefited from his political ties, which he denies.

Source: BBC 

BDST: 1549 HRS, MAR 02, 2023

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