HomeIndia NewsAdani case: Supreme Court says no to govt’s sealed cover for expert panel

Adani case: Supreme Court says no to govt’s sealed cover for expert panel

The Supreme Court on Friday rejected the government’s move to submit in a sealed envelope suggestions on an expert panel and said that it will appoint its own committee to look at investor protection issues in light of the wealth erosion in Adani group stocks following the Hindenburg report.

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By Ashmit Kumar  February 17, 2023, 7:12:29 PM IST (Updated)

3 Min Read
Adani case: Supreme Court says no to govt’s sealed cover for expert panel
The Supreme Court on Friday rejected the government’s move to submit in a sealed envelope suggestions on an expert panel and said that it will appoint its own committee to look at investor protection issues in light of the wealth erosion in Adani group stocks following the Hindenburg report.


The SC had earlier suggested an expert committee to review and improve the current framework for investor protection and the Centre had proposed to set up a panel and submit its suggestions in a sealed envelope.

“We must not accept a sealed cover suggestions from the government. We want to ensure full transparency. It (accepting sealed cover) may give the impression that it is a government-appointed committee that has been accepted by the SC. We will appoint a committee of our own, will instill confidence,” the court said.

The government’s suggestions should be disclosed to the other side, the bench headed by Chief Justice DY Chandrachud stressed, adding that if it does not want to disclose, then it should trust us to form our own committee.

The petitioner Jaya Thakur sought a court-monitored probe into the massive market manipulation and accounting fraud by Adani Group companies.

Adani Group stocks have taken a beating on the bourses after the Hindenburg Research made a litany of allegations, including those of fraudulent transactions and share price manipulation, against the business conglomerate. The Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements.

Also read: Government files affidavit in sealed envelope in Adani case

Thakur said the role of leading public sector banks should also be probed. She also sought a probe into role of LIC, which has an exposure of Rs 30,000 crore in Adani companies. "Need to probe if LIC was used for warehousing operations for price manipulation of Adani shares," she said, adding, "People in expert panel should be persons who command public confidence."

Senior lawyer Prashant Bhushan appearing for the petitioner said there was no doubt that Sebi had received complaints but “did nothing when share prices climbed 40-50%”.

Solicitor General Tushar Mehta reiterated the government's concerns over "potentially adverse signals being sent to global investors".

"This is what we had expressed concern about. The government's stance is that all regulators including Sebi had discharged their roles diligently.

The Supreme Court had suggested an expert committee to review and improve the current framework for investor protection. The court had earlier expressed concern about "lakhs of crores" of investor wealth being wiped out due to a fall in share prices of Adani group companies.

The court has reserved its order on expert panel in the Adani-Hindenburg case.

Also read: 'Centre expresses confidence in current framework for investor protection'
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