India's Top Court Refuses New Fraud Probe into Adani Group

    India's Top Court Refuses New Fraud Probe into Adani Group
    Photo: Dipam Bhachech/Contributor/Hulton Archive

    The Facts

    • India's Supreme Court on Wednesday refused to establish a panel to aid an ongoing probe by the country's market regulator into allegations of fraud by billionaire Gautam Adani's business group.

    • Instead, the court gave the Securities and Exchange Board of India (SEBI) three months to complete its investigations into short seller Hindenburg's reports of “brazen stock manipulation and accounting fraud scheme" by Adani.

    The Spin

    Pro-establishment narrative

    SEBI is a competent and well-respected authority, and Hindenburg's allegations should not be taken at face value. The Supreme Court's own panel has reiterated its confidence in India's market regulator and, in this case, the agency must be allowed to do its job. If Adani's has engaged in illegal behavior, SEBI will expose the group and act against them. Neither overenthusiastic litigation nor a witch hunt is the answer.

    Establishment-critical narrative

    There is more than enough evidence pointing to regulatory lapses on SEBI's part. India's money laundering watchdog had informed the market regulator of several shady transactions in the run-up to Hindenburg's disclosures, but nothing was done. The situation is further clouded by the fact that a former SEBI chief has joined an arm of Adani's company. The institution's very integrity is under question.

    Nerd narrative

    There is a 27% chance of the Adani group regaining a total market capital of $50B before 2028, according to the Metaculus forecasting community.

    Establishment split



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