In a decisive move on January 3, the Supreme Court rejected calls for a Special Investigation Team (SIT) to probe allegations against the Adani Group, as outlined in the Hindenburg Research report. Notably, the court dismissed the credibility of reports published by newspapers and the Organized Crime and Corruption Reporting Project (OCCRP).
The three-Judge bench, comprising Chief Justice DY Chandrachud, along with Justices JB Pardiwala and Manoj Misra, articulated that while independent groups or investigative reports may serve as inputs for the Securities and Exchange Board of India (SEBI) or the Expert Committee, they cannot be considered as definitive evidence challenging the sufficiency of SEBI’s investigation.
Expressing skepticism, the Bench emphasized that relying on third-party reports to question the exhaustive inquiry by a specialized regulator like SEBI does not inspire confidence.
“The reliance on newspaper articles or reports by third-party organizations to question a comprehensive investigation by a specialized regulator does not inspire confidence. Such reports by independent groups or investigative people by newspapers may act as inputs before the SEBI or the Expert Committee. However, they cannot be relied upon as conclusive proof of the inadequacy of the investigation by SEBI. Nor can the petitioners say that such inputs be regarded as credible evidence.”
Furthermore, the Bench asserted that the petitioners could not claim the inputs from independent groups or investigative persons as credible evidence. They stressed that the veracity of the inputs and their sources must be unequivocally demonstrated, and unsubstantiated reports in newspapers should not take precedence over an investigation by a statutory regulator unless there is credible material or evidence casting doubt on the regulator’s findings.
This pivotal decision by the Supreme Court is detailed in the case of Vishal Tiwari v. Union of India W.P.(C) No. 162/2023 and connected cases. For further insights into the judgment, additional reports can be explored.
