Adani-Hindenburg row: Contempt plea in Supreme Court over Sebi probe delay

The Securities and Exchange Board of India (Sebi) faces a contempt plea in the Supreme Court for failing to complete its investigation into the Adani-Hindenburg matter within the court-mandated time-frame. 

“Despite a deadline given to Sebi, it has failed to comply with the direction of this court and has not submitted the final conclusion/report as per the directions of the court. By the order of May 17, 2023, the court directed Sebi to submit its report by August 14, 2023,” stated the application filed by advocate Vishal Tiwari, who is also the petitioner. 

According to the application, Despite receiving a three-month extension until August 14, 2023, Sebi again sought an additional 15 days to file the report. “On August 25, 2023, Sebi filed the status report regarding its investigation stating that overall it had done 24 investigations, out of which 22 investigations had achieved finality and two are of interim nature," the application said. 

Tiwari also referenced a recent report by the Organised Crime and Corruption Reporting Project (OCCRP) against Adani group companies alleging stock market manipulation. The report accused Gautam Adani’s family of investing millions of dollars in its own companies through “opaque” Mauritius funds and alleged heavy investment in Adani group companies' shares since 2013 by two company associates, Chang Chung-Ling and Nasser Ali Shaban Ahli.

Tiwari has pleaded the court to initiate contempt proceedings against Sebi for violating the timeline set by the Supreme Court's May 17 order, direct the regulator to submit its investigation report without delay, direct the court's expert committee to conduct a detailed investigation into the allegations of stock manipulations and secret investments published by OCCRP, and direct the government and Sebi to implement the suggestions and measures given by the expert committee.

The Supreme had on November 6 said the apex court registry would look into the issue of listing for hearing public interest litigations (PILs) related to allegations of stock price manipulation by the Adani group.