The Union Government today told the Supreme Court that the SEBI is “fully equipped” to take care of the situation that arose after the Hindenburg Report on the Adani group of companies. The Court was hearing pleas seeking an investigation into the matter by a committee headed by a retired judge of the Supreme Court.

A Bench of Chief Justice DY Chandrachud, Justice PS Narasimha and Justice JB Pardiwala was hearing the Public Interest Litigations (PILs) filed on the issue.

Solicitor General (SG) Tushar Mehta said that “existing structures are fully equipped to take care of the situation”. The Solicitor General informed the Court that the Union Government has no objection as far as the constitution of a committee is concerned.

We can suggest remit of the committee of names in a sealed cover. Remit would be very relevant”, added SG Mehta, expressing apprehension that the constitution of such a committee could have an “impact on flow of money”.

You come back with the proposed remit of the committee on Friday. We can reflect on it”, said CJI Chandrachud while posting the matter for further hearing on Friday, February 17.

The Solicitor General has suggested that the remit can be circulated by Wednesday. However, the Court said that the remit can be given on Friday.

Before rising, the Bench ordered that the Union Government will file its submission note by Wednesday and the same will also be made available to the petitioner-in-person.

The Court, on last Friday, sought instructions from the Centre and the SEBI about the situation which has been caused by the Hindenburg Report and said that it wants to ensure that the resultant loss to Indian investors does not happen again in future.

Solicitor General Tushar Mehta who appeared for SEBI had told the Court that SEBI is seized of the matter and said "It will be premature for me to answer. The trigger point was a report which was from beyond our territorial jurisdiction. We are also concerned about the investors", said Tushar Mehta.

The Court had clarified that its observations shall not be a reflection on the discharge of statutory function by SEBI or any other statutory authority.

Advocate Vishal Tiwari, the petitioner-in-person appeared before the Supreme Court along with Advocate Manohar Lal Sharma, the other petitioner-in-person who has filed a similar plea.

In his plea, Sharma has alleged that “short sellers, i.e. Anderson resident of USA and his Indian entities hatched a criminal conspiracy did short sale in hundreds of billion dollars prior and thereafter on 25th January 2023 they released a concocted news as a research report qua to the Adani Group of the companies, got crash share market and squared up their short sell position at the lowest rate. They secured billions of profits by butchering citizen of India”.

The plea seeks inquiry to prosecute by registering F.I.R. against Anderson and his associates.

In his PIL, petitioner-Vishal Tiwari has also sought directions to set up a Committee under the Chairmanship of a retired Supreme Court Judge to investigate and form a special committee for sanction of high-power loans. The plea states that after the publication of the Hindenburg Report, various investors have lost massive amounts who invested their savings in such shares. Thus the petitioner has sought directions for forming a Committee under the monitoring of a retired Supreme Court Judge to enquire into the Hindenburg Research Report.

The petitioner has also prayed to set up a special committee for overseeing sanction policy for high-power loans of more than 500 crores that are given to big corporates.

Cause Title- Vishal Tiwari v. Union of India & Ors.