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Synopsis

A fresh application has been filed before the Supreme Court of India seeking acceptance of a Miscellaneous Application filed by Advocate Vishal Tiwari seeking directions to the Securities and Exchange Board of India to conclude its investigation into the Adani group as ordered by the top court in January this year.

"it is important in the public interest and for the interest of the Investors who lost their funds after the publication of Hindenburg report in 2023 against Adani group. The Right to know about the investigations led by SEBI and its conclusions are essential for the benefit of investors...", the application states.

This application cites a new report published by the Hindenburg Research, alleging that the current Chairperson of the Securities and Exchange Board of India (SEBI), and her husband had stakes in offshore funds linked to the Adani Group's alleged money siphoning scandal. 

"Citing whistleblower documents, Hindenburg alleged that SEBI Chairperson and her husband were involved in the same offshore Bermuda and Mauritius funds allegedly controlled by Vinod Adani, the elder brother of Adani Group Chairman Gautam Adani. These funds are believed to have been used for round-tripping funds and inflating stock prices. According to Hindenburg, a declaration of funds signed by a principal at IIFL stated that the source of the investment was "salary," and the couple's net worth was estimated at USD 10 million...", it has been stated.

Tiwari has also challenged the order whereby the Registrar refused to register his Miscellaneous Application under Order XV Rule 5 of the Supreme Court Rules 2013 citing grounds of no reasonable cause for registration.

Supreme Court on January 3, 2024 had directed SEBI to investigate if any loss has been suffered by Indian investors due to the conduct of Hindenburg Research.

This direction was issued in a batch of petitions filed last year seeking an investigation against Adani Group over allegations made by US-based Hindenburg Research and others.

The Supreme Court has also refused to transfer the probe against Adani Group over allegations made by Hindenburg Research to an independent agency while granting three months to SEBI to complete the pending probes. It also observed that no willful or deliberate violations were done by SEBI and the court could not ordinarily supplant powers to investigate.

Case Title: Vishal Tiwari vs. Union of India