Adani’s eponymous conglomerate are finally expected to land at the desk of the nation’s Supreme Court on Monday. Several observers are expecting minor, if any, red marks against the Adani Group after an expert panel appointed by India’s top court in May said the Securities and Exchange Board of India had “drawn a blank” in its investigation into 13 overseas entities alleged to be fronts for Adani companies. The panel accused Sebi of having diluted rules that would have helped break through so-called opaque structures and the regulator’s job is made harder by India’s overlapping web of corporate laws that offer loopholes large businesses often exploit.
Sebi had sought more time to complete the probe, but the court — amid a slump in Adani shares following a damaging report published in January by US shortseller Hindenburg Research — imposed an Aug. 14 deadline. “I am not confident that Sebi will file a robust case,” said Bhaskar Chakravorti, dean of global business at The Fletcher School at Tufts University.
Adani Group “will mostly escape serious negative impact and over time build back up unless the Supreme Court and the regulators do something dramatically different,” he added. Sebi began looking at offshore investments into Adani’s ports, power and infrastructure empire in October 2020. The heart of the matter is whether Adani used companies registered abroad to conduct business and pump up his share prices without properly disclosing affiliations.
Adani has repeatedly denied wrongdoing and said it has made all required disclosures. Hindenburg’s broadside, more than two years later, reiterated the allegations and heaped pressure on the regulator to hasten the probe. Adani Group and Sebi didn’t respond to requests for
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