Supreme Court on Adani: “If we take your suggestions from a sealed cover, it means the other party won’t know”
Supreme Court on Adani: The Central government’s suggestion to the panel of experts to strengthen regulatory measures for the stock market in light of the Adani Group-Hindenburg dispute was rejected on January 17. The Supreme Court bench, presided over by the Chief Justice of India, said it wanted to ensure transparency. The bench stated that it would prefer not to accept the Centre’s suggestions in a sealed cover and thus refused to accept the sealed cover from the Centre.
“We will select the experts and maintain complete transparency. If we take names from the government, it will amount to a government-constituted committee. There has to be complete public confidence in the committee,” said CJI Chandrachud.
#CourCorner | #Adani–#Hindenburg case hearing begins in the Supreme Court
CJI led bench of SC going through the submission made by the govt in a sealed cover pic.twitter.com/KdO5eSAIVR
— CNBC-TV18 (@CNBCTV18Live) February 17, 2023
The Supreme Court said that it would not form a committee to investigate the Hindenburg-Adani incident under the supervision of a sitting SC justice. However, it stated that a committee led by a retired SC judge would be formed.
The bench declared that rather than accepting the names listed on the sealed cover provided by the Center, it would create its committee to ensure transparency.
“We’d rather not accept the sealed cover suggestions. We want to ensure transparency. If we take your suggestions from a sealed cover, it automatically means the other party won’t know, and people will think it is a government-appointed committee. We want full transparency for the protection of investors. We will form a committee. There will be a sense of confidence in the Court,” stated CJI Chandrachud.
In response to allegations of stock manipulation against the Adani Group, the Supreme Court urged the Centre to consider creating a panel of subject matter experts led by a retired judge on February 10. This was done to improve the market regulatory mechanism.
The court also heard two PILs related to the Adani-Hindenburg dispute and reserved its decisions.
The government has not yet taken any concrete action, according to the PIL submitted by lawyer Vishal Tiwari, despite the Hindenburg report having seriously damaged the nation’s economy.
In Tiwari’s PIL, he requests the formation of a commission headed by a former Supreme Court judge to investigate the allegations made in the Hindenburg Report about the corporation.
While PIL submitted by ML Sharma calls for the criminalization of short-selling and the prosecution of Nathan Anderson, the founder of the US short-selling firm Hindenburg Research, and his coworkers
Read more- SC to hear PIL against Adani Group as it goes for audit
Another petitioner, Congress leader Jaya Thakur, questioned the decisions of the State Bank of India (SBI) and the Life Insurance Corporation (LIC) to purchase Adani shares at allegedly inflated rates and called for the prosecution of the Adani group of companies under several laws.
Thakur further requested that a judge on the Supreme Court conduct the investigation.
The bench had already expressed concern over the losses incurred by concerned Indian investors, totalling several lakh crores.
According to earlier statements from the The Securities and Exchange Board of India (SEBI), the Centre to the Supreme Court, is well prepared to handle any fallout from the report.
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