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New Delhi, March 2 – The Supreme Court on Thursday would pass an order on the appointment of a committee to probe the Adani-Hindenburg controversy.
A bench, headed by Chief Justice of India D.Y. Chandrachud and comprising Justices P.S. Narasimha and J.B. Pardiwala would deliver the order on a batch of petitions filed by advocates Vishal Tiwari, M.L. Sharma, Congress leader Jaya Thakur, and Anamika Jaiswal.
On February 17, the Supreme Court had said it would not accept sealed cover names of experts suggested by the Centre for inclusion on the committee to be set up to examine Hindenburg report, which resulted in crashing of Adani Group companies; share prices and caused massive loss to investors.
A bench headed by Chief Justice Chandrachud had said the court will select experts and maintain full transparency, and if the court were to take names suggested by the Central government, then it would amount to a government-constituted committee.
The bench added that the court wants full transparency for protection of interest of investors and it will form a committee so that there is a sense of confidence in the court.
On the aspect of the remit of the committee, Solicitor General Tushar Mehta, representing the Centre, submitted that there should be a holistic view and no unintended impact is caused in the security market. The bench orally observed that it cannot be denied that investors have lost a lot.
Mehta added that so far as your lordship’s suggestion that a former judge should sit on it is concerned, we don’t mind.
In a written response, the Ccentral government had told the Supreme Court that the “truthfulness” of allegations made by a US short seller against the Adani Group should be examined and a fact-finding exercise required to be undertaken as a one-time measure and without making it a precedent.
In a note submitted in the apex court, the Central government supported the formation of a committee to probe allegations made in the Hindenburg report. The government said in view of the unprecedented financial loss suffered by the investors and in view of the complexities involved in the subject which requires urgent consideration, a fact-finding exercise requires to be undertaken as a one-time measure and a committee can be constituted by a former judge of the Supreme Court. The Centre proposed the committee could include Secretary, Ministry of Home Affairs, and the ED Director.
“The committee shall have all the powers to undertake an effective investigation with all powers which are available under the relevant legislations/ regulations/ rules including every authority and powers to avail all assistance and protocols for its investigation outside India,” said the note.