‘Won’t injunct media’, SC refuses plea to gag media from reporting Adani-Hindenburg issue

Supreme Court of India | TCN Photo

The Hindenburg report released last month sparked a heated debate about the business practices of one of India’s largest companies and raises serious questions about the ethics and legality of Adani Group’s operations. 

Sana Ejaz | TwoCircles.net

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NEW DELHI — The Supreme Court on Friday said it will not injunct media on carrying reports on the Hindenburg report on the Adani group till the court pronounces its order on the constitution of a committee to examine the matter.

Advocate M.L. Sharma mentioned the matter before a bench headed by Chief Justice of India D.Y. Chandrachud.

The Chief Justice told Sharma, “We are not going to issue any injunction to the media ever… We will pronounce orders shortly.”

When Sharma repeated his request by saying that the media was creating a sensation, the Chief Justice said, “make a reasonable argument, not for an injunction on the media…”

Sharma, in the application, said media hype is affecting the Indian share 

market and the allegations are creating panic amongst the investors. Sharma’s application is a part of his PIL, which was filed in connection with the Hindenburg report controversy.

On February 17, the Supreme Court said it would not accept sealed cover names of experts suggested by the Centre for inclusion on the committee to be set up to examine the Hindenburg report, which resulted in the crashing of Adani group company share prices and caused massive loss to investors.

The top court said it will select experts and maintain full transparency, and if the court were to take names suggested by the Central government, then it would amount to a government-constituted committee.

The bench, also comprising Justices P.S. Narasimha and J.B. Pardiwala, said the court wants full transparency for the protection of the interest of investors and it will form a committee so that there is a sense of confidence in the court. 

What is Hindenburg report on Adani?
The Hindenburg Research report on the Adani Group, released in January 2023, is a critical analysis of the Indian conglomerate’s financial and operational practices. The report has sparked a heated debate about the business practices of one of India’s largest companies and raises serious questions about the ethics and legality of Adani Group’s operations. 

Adani Group is a multinational conglomerate with interests in ports, logistics, agribusiness, energy, real estate, and defence. With revenues of over $11 billion in the fiscal year 2021, the company is a major player in the Indian business world. However, the Hindenburg report alleges that the company has used unethical accounting practices to exceed its wealth and understate its liabilities.

The Hindenburg report alleges that Adani Group has used aggressive and unconventional accounting practices to inflate its profits and understate its debt. The report claims that the company has booked large amounts of revenue from subsidiaries and joint ventures, which are not consolidated in its financial statements, and that this provides a misleading picture of the company’s financial health and profitability. 

In addition to these financial concerns, the Hindenburg report also accuses Adani Group of engaging in insider trading and tax evasion. The report cites documents obtained from Indian government and regulatory agencies, which it claims support these allegations.

Sana Ejaz is an independent journalist from Bihar. She tweets @SanaEjaz