SC TO HEAR ADANI-HINDENBURG ROW
Advocate Vishal Tiwari recently filed a Public Interest Litigation to the Supreme court to take up the case of the AdaniHindenburg row. The apex court has agreed and will hear the case on Feb 10, 2023. Vishal is a practicing lawyer in the SC.
The PIL requests the Chief Justice of India to handle the case.
CJI Chandrachud along with other judges of SC PS Narasimha and JB Pardiwala will take up the case.
Contents
• Hindenburg-Adani row
• Why is the SC Stepping in?
Hindenburg-Adani row
The Hindenburg Finance research company based in the US released an investigative report on the Adani group.
According to the report, the Adani group is manipulating stocks holding fraudulent shell company operations. Following the report, the stock prices of the company fell. The company lost more than 127 crores of rupees.
Why is the SC Stepping in?
The Hindenburg-Adani row which has been in the news for quite some time now is putting India’s reputation at stake. Before the row, Gautam Adani was the second richest person in the world.
TRIVIA:
Adani Group is an Indian multinational conglomerate, headquartered in Ahmedabad. Founded by Gautam Adani in 1988 as a commodity trading business, the Group’s businesses include:
port management, electric power generation and transmission, renewable energy, mining, airport operations, natural gas, food processing and infrastructure.
At its peak, Adani was the largest Indian conglomerate, surpassing Reliance Industries. It lost more than $104 billion in value after fraud and market manipulation allegations by short-seller firm Hindenburg Research. The Adani Group has also attracted other controversies due to reports of stock manipulation, accounting irregularities, cronyism, tax evasion, environmental damage, and suing journalists.
Hindenburg Research LLC is a U.S. investment research firm with a focus on activist short-selling founded by Nathan Anderson in 2017. Named after the 1937 Hindenburg disaster, which they characterize as a human-made avoidable disaster, the firm generates public reports via its website that allege corporate fraud and malfeasance. Companies that have been the subjects of their reports include Adani Group, Nikola, Clover Health, Block, Inc., Kandi, and Lordstown Motors. These reports also feature defenses of the practice of short-selling and explanations of how short-sells can “play a critical role in exposing fraud and protecting investors.”