The Securities and Exchange Board of India (SEBI) on Monday told the Supreme Court that it has not been probing any companies of the Adani Group since 2016, as was earlier contended. The market regulator’s affidavit is in stark contradiction to the Finance Ministry’s reply in 2021 in Parliament that SEBI and DRI had probed the companies of Adani Group. The SEBI sought additional time to investigate the dealings of the conglomerate, reasoning that they were “highly complex”.
The affidavit filed before a Bench of Chief Justice of India (CJI) DY Chandrachud and Justices PS Narasimha and JB Pardiwala states that allegations that SEBI has been investigating Adani Group companies since 2016 is factually baseless. The apex court is scheduled to hear SEBI’s demand on Tuesday. The Supreme Court is seized of four petitions concerning the recent report published by short-seller Hindenburg Research alleging fraud on the part of the conglomerate by inflating share prices.
“The application for extension of time filed by SEBI is meant to ensure carriage of justice keeping in mind the interest of investors and the securities market since any incorrect or premature conclusion of the case arrived at without full facts material on record would not serve the ends of justice and hence would be legally untenable,” the affidavit reads.
According to the SEBI, an investigation relating to the twelve transactions referred to in the Hindenburg Report had many sub-transactions across numerous jurisdictions. It adds that a rigorous investigation of these transactions would require the collation of data from various sources along with supporting documents. Following this, an analysis would be conducted before conclusive findings can be arrived at. SEBI sought an extension of six months.