Adani-Hindenburg row: Pleas in SC on 'conspiracy to defame India'
The Supreme Court on Friday will hear two pleas seeking the constitution of a panel headed by a retired SC judge to probe the "conspiracy" by short-seller Hindenburg Research against Adani Group. The PILs allege that the firm conspired to accuse Adani of unprecedented fraud and stock manipulation to tarnish India's image and triggered an "artificial crash" of its stocks for profit.
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On January 24, Hindenburg Research published a report on the Adani conglomerate and accused it of endangering the money of investors. It made gross allegations of money laundering through foreign shell companies and looting of public resources and projects with political backing. Trashing the report, Gautam Adani termed it an attack on India as various quarters called for an investigation into the matter.
Pleas seek to prosecute Hindenburg, review loan policy
The PILs have been filed by advocates Vishal Tiwari and ML Sharma. Tiwari's plea has sought the formation of a committee to assess the policy of sanctioning loans of over Rs. 500 crore to large corporations. Sharma's plea seeks the prosecution of Hindenburg Research's Nathan Anderson and his associates in India for allegedly exploiting innocent investors and causing them loss by misleading them.
Adani group of companies shrunk by over $100 billion
Following the report, seven listed companies in the Adani Group lost half of their market capitalization, which shrank by over $100 billion. Although the group responded to the allegations by releasing a 413-page reply, that had more than 350 pages of annexures, it didn't address most of the allegations related to the group's use of tax havens and over-the-top debt levels.
Adani withdrew Rs. 20,000 crore FPO
Earlier, Adani Group of companies claimed that the targeted attack on it and India was intended to disrupt the conglomerate's then-upcoming India's biggest follow-on public offer (FPO) amounting to Rs. 20,000 crore. Though it was salvaged by anchor investors chipping in for nearly 30% of the shares despite dwindling market goodwill, Adani withdrew it, citing morals and ethics.
