The Supreme Court is set to deliver its judgment on Wednesday on petitions seeking a court-monitored probe into allegations made by US-based Hindenburg Research against the Adani Group regarding violations of stock market regulations.
The Supreme Court had reserved its judgment in November 2023.
On January 24, New York-based investor research firm Hindenburg published a report accusing the Adani Group of ‘accounting fraud’ and ‘stock manipulation’ aimed at inflating its stock prices.
The business conglomerate had rejected the report as 'unresearched' and 'maliciously mischievous'. Subsequently, a group of Public Interest Litigations (PILs) was filed in the Supreme Court by Advocates Vishal Tiwari, ML Sharma, Congress leader Dr. Jaya Thakur, and activist Anamika Jaiswal. These PILs sought a court-monitored probe into the matter.
What is Hidenberg’s allegation against the Adani group?
Hindenburg Research alleged that the Adani Group had engaged in brazen stock manipulation and accounting fraud schemes amounting to ₹17.8 trillion (US$ 218 billion) over decades.
The report claimed the Adani family controlled offshore shell entities in tax havens, which were purportedly used for corruption, money laundering, and taxpayer theft while diverting funds from the group's listed companies.
As a result of this report, Adani Group stocks witnessed a substantial decline, losing over $140 billion in just a few days and leading to the cancellation of a ₹20,000 crore share sale.
