Hindenburg Report: Fresh Plea In Supreme Court

As allegations raised by recent Hindenburg research report is already causing furor, fresh petition has been submitted in the Supreme Court demanding the pending of investigations against the Adani group by the the Securities and Exchange Board of India (SEBI). The appeal filed by advocate Vishal Tiwari also complained of top court Registrar’s alleged refusal to register the case.

As per the petitioner, the Court in a January 3 order had given SEBI three months to complete the investigation on Adani group of companies. Since the “deadline” has finished, Tiwari sought to submitted a fresh application before the Supreme Court.

Also Read | Hindenburg Hits Again; Alleges Adani-Sebi Chief Collusion

The application had urged the following details:

The submission of SEBI’s investigation report in the Adani-Hindenburg matter, as directed by the Supreme Court on June 3; the submission of a status report by the Central government as well as the SEBI on whether it has considered the suggestions of the Court-constituted Expert Committee to improve the strength of the Indian securities market; the Central government and the SEBI should file a detailed report on the share market crash and loss of investors after the Lok Sabha 2024 results, Bar and Bench reports.

But on August 5, the Court’s Registrar declined to register the petition arguing that it was “thoroughly misconceived” and does not disclose any reasonable cause. The Registrar held that that the Court has not put forward any deadline for SEBI’s investigation, contrary to Tiwari’s argument. Following, the petitioner has challenged this move in his plea.

Tiwari has stated that it is pertinent for the public and investors who faced losses after the publication of the 2023 Hindenburg report against the Adani group to know where the SEBI probe observation in this regard lies. Hindenburg Research, a US-based investment research firm.

Also Read | Adani Group Refutes Hindenburg Claims

The latest investigation from Hindenburg  released on August 10, claimed SEBI chairperson Madhabi Buch and her husband Dhaval Buch were involved in Adani Group’s offshore funds. The report addressed new claims of a conflict of interest. This recent probe has also been stressed in Tiwari’s petition.

According to whistleblower documents, the Buchs held investments in the IPE Plus Fund 1, a small, obscure Mauritius-registered offshore fund. This fund is part of a convoluted structure involving entities controlled by Vinod Adani, brother of Adani Group founder Gautam Adani, who allegedly funneled money through these offshore accounts via over-invoicing of power equipment.

Meanwhile, Madhabi Buch and her husband have also released a detailed statement on the matter. The couple refuted the allegations on Sunday, a day after the Hindenburg Report released, and assured transparency and provided a comprehensive defense detailing their decades long career and business deals.