A Public Interest Litigation (PIL) was filed by Advocate ML Sharma before the Supreme Court seeking a detailed investigation against Hindenberg (US-based short-selling firm) that accused Gautam Adnani (Indian Business Tycoon) of corporate fraud. On January 24, 2023, Hindenburg published their report in which they accused the Adani group of malpractices and manipulations in stock prices. These allegations were refused by the Adani group terming it as an attack against India whereas a US-based short seller stated that, “fraud cannot be obfuscated by nationalism”.
Due to the Hindenburg report, shares of the Adani group deteriorated drastically whereas the petitioner Vishal Tiwari stated, “Lots of people who had the whole lifetime saving in such stocks gets a maximum setback due to fall in such shares with a huge amount of money getting into drain. Various instances of suicides and other life-taking incidences come up because of a such huge loss of money where lifesaving of individuals is invested in.” Moreover, the overall capitalization of Adani Group stocks was reduced to 51%, i.e, 9.31 lakh Crore.
Advocate Sharma urged in his appeal before the top court, a direction to the center as well as the Securities and Exchange Board of India (SEBI) to inquire against Hindenburg for exploiting lakhs of innocent investors.
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