Indian Supreme Court Rejects Special Probe into Adani Fraud Allegations

Indian Supreme Court rejects special probe into fraud allegations against Gautam Adani's firms, directing expedited SEBI investigation. Adani, denying wrongdoing, hails 'truth prevailing' amid market turbulence. Political ties scrutinized.

In a significant legal development, India's Supreme Court has dismissed appeals urging the establishment of a dedicated panel to investigate fraud allegations against billionaire Gautam Adani's conglomerate. The court's decision follows accusations by Hindenburg Research in January, claiming "brazen" stock manipulation and accounting fraud within Adani's companies.

A committee, appointed by the court in March, was overseeing an investigation by the Securities and Exchange Board of India (SEBI) into the allegations. Despite concerns raised by petitioners regarding the progress and a perceived "conflict of interest" among panel members, Chief Justice DY Chandrachud asserted that there were "no grounds" for a special investigative team.

Hindenburg Research Vs Adani 

Gautam Adani, consistently denying any wrongdoing, welcomed the court's decision, stating that "truth had prevailed" after months of legal scrutiny.

Hindenburg Research, specializing in short-selling, had accused Adani of orchestrating the "largest con in corporate history," raising questions about the Adani Group's offshore holdings and financial stability. The allegations triggered a substantial market downturn, wiping over $100 billion off Adani Group's market value. Adani's companies, however, have shown resilience with a recent rebound in their stock prices.

The court has directed SEBI to expedite its investigation, setting a three-month deadline. The financial and political implications of this ruling continue to reverberate, with Gautam Adani's close ties to Prime Minister Narendra Modi under renewed scrutiny.


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