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In an application, advocate Vishal Tiwari, who had filed the PIL in the matter, also sought a direction from the court to direct SEBI to give an explanation for not complying with the timeline and file the report without any further delay
A plea filed in the Supreme Court has sought contempt action against SEBI for violating the timeline fixed for completing the Adani-Hindenburg controversy.
In an application, advocate Vishal Tiwari, who had filed the PIL in the matter, also sought a direction from the court to direct SEBI to give an explanation for not complying with the timeline and file the report without any further delay.
He also sought a direction to the expert committee constituted to conduct a detailed investigation in respect to the report and allegations of Stock manipulations and secret investments published by the Organised Crime and Corruption Reporting Project (OCCRP).
His application stated that the SEBI, already investigating the issue, was directed to conduct the investigation and submit its report. The regulator further sought the extension of time for the period of six months but the court was inclined to grant the extension of a three-month period till August 14, 2023. SEBI again sought 15 days to file report/Status. On August 25, 2023, SEBI filed the status report regarding its investigation stating that overall it has done 24 investigations out of which 22 investigations had achieved finality and two are of interim nature, as per the plea.
"Despite of deadline given to the SEBI it has failed to comply with the direction of this Court and has not submitted the final conclusion/report as per the directions of the Court," it said.
The application also cited the latest report by the Organised Crime and Corruption Reporting Project (OCCRP) against the Adani Group, which, it claimed, has caused a new political and economic storm in India.
"The report has alleged Gautam Adani's family of investing millions of dollars in its own companies via “opaque" Mauritius funds. The report mentions two of company associates, Chang Chung-Ling and Nasser Ali Shaban Ahli, and alleges them of investing heavily in Adani group's companies shares since 2013," it claimed.
The application stated that after the publication of the Hindenburg report against the Adani Group, a big surge in share market was seen and thousands of crores of the investors' money got lost.
"But now the question arises that whether the present Regulatory Authority is efficient enough or some changes are required by setting up a new Regulatory body with more efficient mechanism so that in future such damaging incidents may not occur in share market and the investors money may be protected," it asked.
The application also stated that a strong mechanism is also required to keep vigil upon the companies' conduct and practice as to whether they are complying with necessary rules and regulations laid down by the regulatory Authority.
"Till now after the recommendations and suggestion given by the expert committee in its report, the Union Government has not taken any strong step in compliance of that and has not apprised the court with any secured framework for the protection of investors in future," it said.
The application also stated that since the expert committee constituted by this court is still working for the assistance of this court in the present matter and has not been discharged, the new disclosures and report of Organised Crime and Corruption Reporting Project (OCCRP) against Adani Group, should be investigated by it.
On March 02, 2023, the apex court, acting on a batch of petitions filed by advocate Tiwari and others, had constituted the expert committee to investigate inter alia the allegations of accounting frauds made against the Adani Group in the Hindenburg Report and whether there was a regulatory failure in the same.
Case Title: Vishal Tiwari Vs Union of India & Ors
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