Hindenburg probe panel has conflict of interest, alleges petitioner

Hindenburg probe panel has conflict of interest, alleges petitioner

A new motion filed in the top court has accused the court-monitored committee of investigating allegations of stock manipulation against the Adani Group in the Hindenburg report also has a conflict of interest.

The petition also called for the Supreme Court to establish a fresh expert committee, which experts from the finance, law and stock market have excellent integrity and who have no conflict of interest in the outcome of the instant matter.

The six-member committee includes: OP Bhatt, Justice JP Devadhar, KV Kamath, Somasekhar Sundaresan, Nandan Nilekani and Somasekhar Sundaresan.

The petitioner has argued that OP Bhatt, former chairman of State Bank of India, is currently working as chairman of Greenko, a renewable energy company. Greenko and Adani Group have been working in a close partnership to provide energy to Adani Groups facilities in India since March, 2022.

KV Kamath, on the other hand, is facing an FIR in a bank fraud case, and advocate Somashekar has appeared for Adani in various forums, according to the petition.

On October 13th, the Supreme Court will hear the petition.

A petitioner in the Adani-Hindenburg case alleged that market regulator the Securities and Exchange Board of India had suppressed important facts from the top court and slept over the directorate of Revenue Intelligence's letter on alleged stock manipulation by the Adani firms.

The petitioner said that while the investigation was going on in the over invoicing case, the directorate of Revenue Intelligence sent a letter to the then Sebi chairperson in 2014 telling him that the group may be committing stock market manipulation using the modus operandi of over-valuation in the import of power equipment.

The affidavit claimed that the letter was accompanied by a CD containing evidence of Rs. 2,323 million and two notes on the case being investigated by the DRI. The affidavit also said that more documents were to be obtained from the Mumbai Zonal Unit of the DRI.

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