India’s supreme court orders investigation into Adani business group

India’s top court on Thursday ordered a committee of experts to investigate any regulatory failure related to the country’s second-biggest conglomerate, the Adani Group.

The investigation was prompted by allegations made by US short seller Hindenburg Research in a report accusing Adani’s companies of engaging in market manipulation and other fraudulent practices.

Shares of the group’s flagship Adani Enterprises and other affiliated companies have lost tens of billions of dollars in market value since Hindenburg issued his report.

The Adani Group has denied wrongdoing and defends itself against the allegations in a 413-page rebuttal. In a Thursday tweet, he welcomed the injunction.

“It will bring finality in a limited way in time. The truth will prevail,” the company said.

The expert committee will submit its findings to the Supreme Court within two months, said Chief Justice DY Chandrachud and Justices PS Narasimha and JB Pardiwala.

The high court also ordered the government-run Securities and Exchange Board of India to investigate whether there was a breach of rules or manipulation of share prices by the Adani Group.

The court acted on petitions submitted by some activists and lawyers.

In addition to investigating the allegations against Adani, the expert committee will suggest measures to improve regulatory oversight and investor protection.

Adani Enterprises canceled a share offering meant to raise $2.5 billion last month after Hindenburg released his report and its share price plummeted.

Opposition lawmakers blocked parliamentary proceedings last month demanding an investigation into the business dealings of coal magnate Gautam Adani, who is said to have close ties to Prime Minister Narendra Modi.

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