Adani Gets SC Clearance, Prompting Rahul to Craft New Strategy

The Supreme Court dismissed requests for a CBI or SIT probe into Adani following allegations by Hindenburg Research. It backed SEBI's investigation, refusing reliance on external reports. Adani hailed the verdict, contrasting the political uproar it sparked.

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In a significant ruling, the Supreme Court rejected pleas for a court-monitored investigation into the Adani group's affairs, refuting claims made by the American shortseller firm, Hindenburg Research. The bench comprising Chief Justice D Y Chandrachud, Justice J B Pardiwala, and Justice Manoj Misra dismissed four petitions that sought a probe into the allegations mentioned in the Hindenburg Report, released on January 24, 2023.

Emphasizing SEBI's proactive investigations, the apex court noted the completion of 22 out of 24 inquiries into the Adani group. It directed SEBI to finalize the remaining investigations within three months. The court's stance highlighted that SEBI's scrutiny did not showcase regulatory shortcomings based on available evidence.

Dismissing reliance on reports like the OCCRP report and media articles referencing it, the court stressed that such external sources could serve as inputs but were not conclusive proof. The Hindenburg Report's release just ahead of Adani's Rs 20,000 crore Follow-On Public Offer led to its withdrawal and a subsequent stock market downturn.

Gautam Adani expressed gratitude on social media, citing the verdict as the triumph of truth. Senior Advocate Mukul Rohatgi echoed this sentiment, welcoming the court's trust in SEBI's investigation. However, political reactions diverged, with opposition parties critiquing the verdict for allegedly favoring the Adani group.

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Interestingly, while Rahul Gandhi persistently questioned Adani's dealings, his party's government in Telangana embraced investments from the Adani group. The legal exoneration of Adani now poses a challenge to Rahul's narrative against the Modi government.

Additionally, Telangana's CM, Revanth Reddy, met with a delegation from the Adani group, signaling potential collaborations for a data center and aerospace park. Adani, once among the world's richest, faced a substantial wealth decline after the Hindenburg Report.

With this legal clearance, Adani's position seems fortified while Rahul Gandhi might need to rewrite his political playbook sans his key target, posing a new challenge in the political landscape.