The Supreme Court made it clear on Friday, February 24, that it will not issue an injunction against the media in connection to the recent Hindenburg Research report on the Adani Group of firms and its market impact.
Pronouncing the decision Chief Justice of India (CJI) DY Chandrachud said there is no question of gagging the media till the court pronounces the order. “We are not going to issue any injunction to the media ever. We will pronounce orders shortly,” the CJI said.
The apex court was responding to a plea filed by Adv ML Sharma on February 3. The plea had sought a gag order to prevent media from carrying statements or allegations related to the Adani group firms unless they are filed with and verified by market regulator SEBI.
“Media hype has crashed the Indian share market by more than 50 per cent. Regular allegations /statements in the media are creating panic amongst the investors who are selling their stock under panic and suffering financial losses. Common investors are being butchered which must be stopped in the interest of justice,” the interim plea said.
Adani-Hindenburg row: SC rejects centre’s sealed cover suggestions over expert panel
On Friday, February 17, the Supreme Court turned down the Centre’s suggestion in a ‘sealed cover’ regarding a proposed panel of experts recommending steps to tighten regulatory measures in order to minimise any loss to Indian investors due to market volatility, as witnessed during the Adani-Hindenburg row.
A bench comprising of the Chief Justice of India (CJI), DY Chandrachud, and Justices PS Narasimha and JB Pardiwala decided against accepting the government’s sealed cover proposal stating that since the issue demands ‘full transparency’, doing so may give the impression that the committee was appointed by the government and the matter was kept away from the other side.
Four petitions regarding a report written by short-seller Hindenburg Research, alleging conglomerate fraud that cost the Adani Group losses of over $100 billion in market value, were being heard by the court.
Notably, on Monday, the Centre agreed to the top court’s recommendation to form a panel of experts to look into strengthening the regulatory procedures for the stock market in the wake of the share price drop in the Adani Group stocks, which was precipitated by a report by Hindenburg Group over claims of “stock manipulation”. Nonetheless, the Adani group has vehemently denied any wrongdoing.