| 18 September 2023
| Christie Anto
New Delhi, India - In a development that adds another layer of complexity to the ongoing investigations into the Adani Group, a petition has been filed in the Supreme Court, claiming a conflict of interest within the recently appointed committee tasked with probing allegations against the conglomerate. This petition comes on the heels of a similar accusation against the Securities and Exchange Board of India (SEBI), suggesting a web of affiliations and interests that have the potential to undermine the credibility of these investigations.
The allegations stem from a report by US-based short seller Hindenburg Research, which accused the Adani Group of engaging in dubious business practices, including stock price manipulation. In response to these allegations, the Supreme Court had appointed a six-member committee comprising prominent individuals from various fields, including industrialist OP Bhatt, Justice JP Devadhar, veteran banker KV Kamath, Infosys co-founder Nandan Nilekani, and lawyer Somasekhar Sundaresan, all under the leadership of former Supreme Court judge Justice AM Sapre.
However, the petition contends that this committee is tainted by conflicts of interest that could compromise its impartiality. The petitioner alleges that OP Bhatt, Chairman of the Greenko group, has close ties to Gautam Adani, the founder and chairman of the Adani Group. Furthermore, KV Kamath, a committee member, is facing a bank fraud case, raising questions about his suitability for the role. The petitioner also pointed out that Somashekaran has appeared for Adani at various forums in the past, which could create a perception of bias.
According to the petition, the presence of individuals with such associations within the committee casts doubt on its ability to inspire confidence among the public. As a result, the petitioner has urged the Supreme Court to disband the existing committee and establish a fresh expert panel comprised of members from the fields of finance, law, and the stock market.
These allegations of conflicts of interest in the committee tasked with investigating the Adani Group come shortly after another petition questioned SEBI's ability to impartially probe the conglomerate. In that case, the petitioner argued that a member of SEBI had family ties to the Adani Group, alleging a conflict of interest within the regulatory body.
"SEBI has an apparent conflict of interest in investigating the Adani group since an employee, Cyril Shroff's daughter, is married to Karan Adani, Adani Group Chairperson Gautam Adani's son," the affidavit filed by petitioner Anamika Jaiswal stated.
The accumulation of these conflict of interest claims surrounding both the Supreme Court-appointed committee and SEBI has raised concerns about the transparency and fairness of the investigations into the Adani Group. With the Supreme Court scheduled to hear the petition regarding the committee's composition on October 13, the outcome of these proceedings will be closely watched by the public and the business community alike.
As the allegations continue to unfold, it is imperative for India's regulatory and judicial institutions to maintain their credibility and ensure that investigations into corporate wrongdoing remain free from any perceptions of bias or favoritism. The stakes are high, as the findings from these probes will have far-reaching implications for one of India's most prominent business conglomerates and the broader financial markets.
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