Fresh Plea In SC Seeks Completion Of Hindenburg-Adani Probe By SEBI, Mentions Allegations Against Madhabi Puri Buch

A fresh plea has been moved in the Supreme Court seeking the timely completion of probe by SEBI in the Adani-Hindenburg case, while mentioning the recent report by the US short-seller in which it has made allegations against SEBI chairperson Madhabi Puri Buch.

New Delhi: A plea has been moved in the Supreme Court against the court registry declining to list an application seeking a status report from the SEBI on the action taken to address allegations of fraud by US short-seller Hindenburg Research against the Adani group of companies.

The plea gains significance against the backdrop of the latest report published by Hindenburg Research levelling allegations of conflict of interest on the part of SEBI chairperson Madhabi Puri Buch.

The plea filed by advocate Vishal Tiwari said that in an order passed by the apex court on January 3, the Securities and Exchange Board of India (SEBI) was given three months to complete its probe. “It is important in the public interest and for the interest of the investors who lost their funds after the publication of the Hindenburg report in 2023 against Adani group. The Right to know about the investigations led by SEBI and its conclusions are essential for the benefit of investors….”, said the plea.

Tiwari said the US-based short-seller Hindenburg Research, in a new report released on Saturday, alleged that the current chairperson of SEBI, Madhabi Puri Buch, and her husband, Dhaval Buch, had stakes in offshore funds linked to the Adani Group's alleged money siphoning scandal. “The report cited whistleblower documents. The report comes a year and a half after its damaging report on the Adani Group that had far-reaching consequences, including the cancellation of the company's flagship Rs 20,000 crore follow-on public offer”, said the plea.

The plea said: “The SEBI chief has denied these allegations as baseless and this court also held that third-party reports cannot be considered. But this all has created an atmosphere of doubt in the minds of the public and investors and in such circumstances, it becomes incumbent for SEBI to conclude the pending investigations and declare the conclusion of the investigations”.

In January this year, the apex court had declined to interfere or order further action on allegations of stock manipulation levelled by the US short-seller against the Adani group.

Tiwari, in the present plea, states that the court's decision in January to say that the probe should "preferably" be completed within this timeline does not mean that no deadline was fixed. Since the "deadline" had elapsed, Tiwari, who was one of the petitioners in the main matter, moved a fresh application. On August 5, the court's registrar declined to register the application stating that it was "thoroughly misconceived" and does not disclose any reasonable cause. “On the grounds of no reasonable cause for registration, which has suspended the Fundamental Right of the petitioner and has closed the door of the Hon’ble Court for the petitioner forever”, said Tiwari, in the fresh plea against the registry's decision.

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