In a significant development, the Supreme Court has formed an expert committee to look into the Hindenburg report on Adani Group. The committee will be headed by former apex court judge, Justice AM Sapre. The move comes after a report by Hindenburg Research, a US-based activist investor, accused Adani Group of multiple financial irregularities.
The committee, which has been given six weeks to submit its report, will examine the allegations made in the Hindenburg report and determine their veracity. The panel will consist of experts from various fields, including forensic accounting, financial analysis, and corporate governance.
The Hindenburg report, which was released in June 2021, alleged that Adani Group had inflated its net worth by over $6 billion, had diverted funds from its subsidiaries to its own accounts, and had benefited from preferential treatment by the Indian government. The report also claimed that the group had links to a network of shell companies based in tax havens.
Adani Group has vehemently denied all the allegations made in the report and has termed them as “blatantly erroneous.” The group has accused Hindenburg Research of attempting to manipulate the market by spreading false information.
The Supreme Court’s decision to form an expert committee has been hailed by experts as a step in the right direction. Many believe that the committee’s findings will go a long way in restoring the credibility of India’s corporate sector, which has been hit hard by a spate of financial scandals in recent years.
The Adani Group is one of India’s largest conglomerates, with interests in a wide range of sectors, including ports, logistics, power, and mining. The group has been at the center of several controversies in the past, including allegations of environmental violations and human rights abuses.
The formation of the expert committee is expected to have far-reaching implications for India’s corporate landscape. The move is being seen as a signal to companies that they cannot get away with financial irregularities and that they will be held accountable for their actions.