The Indian Supreme Court refused Wednesday in its Vishal Tiwari v Union of India ruling to transfer investigations against the Adani Group, an Indian multinational conglomerate, to a Special Investigation Team (SIT) or the Central Bureau of Investigation (CBI). The investigation into alleged stock manipulation is currently being carried out by the Securities and Exchange Board of India (SEBI), which has been directed to complete the remaining two out of 24 investigations within three months.

The Supreme Court emphasized the court’s limited role in SEBI’s regulatory domain, restricting any intervention to instances of fundamental rights violations or manifest arbitrariness. The court dismissed calls to revoke SEBI’s amendments, validated tightened regulations and directed SEBI to expedite pending investigations.

SEBI had introduced amendments to the SEBI (Foreign Portfolio Investments) Regulations, 20143 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which were alleged to have increased opacity by the petitioner. The court rejected transferring investigations from SEBI, dismissing claims of lackadaisical investigation and conflict of interest. The petitioner’s reliance on third-party reports and letters was rejected as inconclusive proof. The court urged the Union government and SEBI to consider the Expert Committee’s suggestions for strengthening the regulatory framework. However, SEBI and investigative agencies were directed to probe potential legal infractions in the loss suffered by Indian investors, with appropriate actions to be taken if violations are identified.

Following the judgment Chairman of the Adani Group Gautam Adani tweeted, “The Hon’ble Supreme Court’s judgement shows that: Truth has prevailed. Satyameva Jayate [which translates to: Truth alone triumphs]. I am grateful to those who stood by us. Our humble contribution to India’s growth story will continue. Jai Hind (Hail India).” Meanwhile, advocate and Member of Parliament of Indian National Congress, the largest opposition party, Manish Tewari commented,

I have not read the SC order in detail but they have directed the SEBI to complete their investigation in two months. The fact remains that the allegations made in the Hindenburg report came into the public space a year ago and if the SEBI had been vigilant or they would have been swift, the investigation would have been completed a long time back.

The Supreme Court  had ordered an investigation into the Adani Group following accusations of business malpractice in March 2023. This decision came after a research report by Hindenburg detailed a two-year investigation into the Adani Group, alleging stock manipulation. The court had directed the SEBI to probe potential failures to disclose transactions with related parties and stock price manipulation. An expert panel, headed by a retired Supreme Court judge, had been formed to enhance investor protection mechanisms. The Hindenburg report claimed the Adani Group’s activities had led to a $135 billion USD loss for several listed companies. The Adani Group denied these allegations, asserting proper disclosure and auditing of party transactions.

The Indian opposition has long claimed that the government of India is protecting the Adani Group due to the close relationship between Gautam Adani and the top leaders of the ruling party.