“SEBI Accused of Withholding Information and Delaying Action in Adani Stock Manipulation Probe”

SEBI Accused of Suppressing Facts and Delaying DRI Information in Adani Stock Manipulation Probe

The ongoing Adani-Hindenburg controversy has taken a new twist as a petitioner involved in the case has alleged that the Securities and Exchange Board of India (SEBI) withheld crucial information from the Supreme Court and failed to act promptly on Directorate of Revenue Intelligence (DRI) alerts related to alleged stock manipulation by Adani companies.

The petitioner, Anamika Jaiswal, has claimed in an affidavit filed with the Supreme Court that while SEBI was investigating the Adani group for over-invoicing, the DRI had sent a letter to the then SEBI chairperson in 2014. This letter reportedly alerted SEBI to the possibility that the Adani group might be involved in stock market manipulation using funds allegedly siphoned off through over-valuation in the import of power equipment. The DRI’s letter included a CD with evidence of siphoned funds amounting to โ‚น2,323 crore, along with two case notes regarding the investigation.

Jaiswal’s affidavit also asserts that SEBI did not promptly act on these alerts and that important facts were allegedly suppressed from the Supreme Court. Additionally, the affidavit raises concerns about a potential conflict of interest within SEBI regarding the Adani investigation. It mentions that Mr. Cyril Shroff, the Managing Partner of Cyril Amarchand Mangaldas, had been a member of SEBI’s Committee on Corporate Governance, which deals with offenses like insider trading. Moreover, it notes that Shroff’s daughter is married to the son of Gautam Adani, the chairman of the Adani Group.

This revelation has raised questions about impartiality and transparency in the ongoing investigation. The Supreme Court is currently handling four Public Interest Litigations (PILs) related to the Adani-Hindenburg controversy, and these latest allegations may further complicate the legal proceedings.

The SEBI had previously informed the Supreme Court that it had completed investigations in most matters involving the Adani group, except for two allegations, and was awaiting information from five tax havens regarding the ownership of foreign entities that invested in the conglomerate. The Adani controversy has garnered significant attention in India’s financial sector, and the outcome of these investigations will have far-reaching implications for the group and the regulatory authorities involved.

Sources By Agencie

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