Fresh PIL filed in Supreme Court against US-based short-selling firm Hindenburg Research
A new PIL has been filed on the report given by US-based short-selling firm Hindenburg Research against the Adani Group.
The PIL has requested for the constitution of a committee under the head of a retired Supreme Court Judge for the investigation of the contents pointed in the Research Report.
US-based Hindenburg had published its report that accused Adani group for the manipulations and malpractices to inflate its stock prices.
The allegations were refuted by the Adani Group as they published a 413-page reply. The group also termed it as an attack against India.
Post this rejoinder was put before by the Hindenburg stating that fraud cannot be obfuscated by nationalism and stood by its report.
It is soon after the publishing of the Hindenburg report that the rising shares of Adani have been nosediving in the share market.
The embattled group was also forced to recall its FPO, with the tumbling down of stock prices.
The petitioner, Vishal Tiwari, has put forward the drastic condition and fate of people when the shares fall in the securities market due to various reasons.
The petitioner talked about people who have put their whole life time saving in such stocks to gets maximum setback resulting their moneygoing to drain.
The petitioner also talks about the different courses people undertake because of such huge loss of money where lifesaving of individuals is invested in.
The PIL also talks about the comparison between common citizens and big corporations in terms of getting a long sanctioned. This process is not easy for the citizens whereas, loans worth thousands and lacs of crores are disbursed to big business entities in a very short time.
The plea also talked about the publications of Hindenburg Report which has eventually led to the loss of a huge amount for various investors who have invested their life saving in such shares.
The plea talks about the market value of all 10 Adani stocks have halved with investors sitting with a colossal loss of Rs 10 lakh Crore.
it is worth to mention that in the last seven trading sessions since the release of the report by the American short-seller, the market capitalisation of all 10 Adani Group stocks is down by over 51% to Rs 9.31 lakh Crore.
As per the report the stock by Adani Group fell 5-20% on Friday, wiping out ₹3.19 trillion in investor wealth after Hindenburg Research said it stood by its findings of alleged share price manipulation and accounting fraud by the conglomerate.
It is pertinent to note that so far no respondents has taken any concrete step of action regarding the Adani-Hindenburg fiasco, despite there being a massive attack perpetrated on the economy system of the country.
Petitioner talks about the State Bank of India which is India’s one of largest financial institutions, and has provided loans amounting to $2.6 billion to companies in the Adani Conglomerate, however there’s no refinery process for loan disbursement, that is under what criteria and regulations this public money is spontaneously being used.
The question that public interest now throws upon is how such public money is being floating in the money market without any refined process of loan being disbursed and such therefore has shaken the country through its huge exposure after the Hindenburg Report.
The present PIL aims to focus on the fate of such investors who’ve lost their money with no redressal available.Stating that’s it’s a matter of ‘serious concern’, the plea argued that such unregulated disbursal of loan with huge loss in the form of such huge exposure has destroyed public money at large with no redressal being addressed by the Respondents as to how to recover the losses in respect to public money.