Renowned legal expert Mukul Rohatgi has welcomed the decision of the Supreme Court to appoint a committee to look into the issues related to the Hindenburg-Adani quarrel, which has wiped out hundreds of crores of investor money. Congress has criticized the decision, insisting that a Joint Parliamentary Committee is the best course of action on the matter. The Trinamool Congress, Uddhav Thackeray faction of the Shiv Sena and Arvind Kejriwal’s Aam Aadmi Party have expressed their support for the court’s decision.
Adani Group chief Gautam Adani has already praised the initiative of the supreme court by tweeting that “the truth will prevail”. Mr Rohatgi expressed concern that the formation of a Joint Parliamentary Committee will only lead to a “political brawl”.
“Instead of having a joint parliamentary committee and turning it into a political slugfest, the idea is to look at the problems in the system and close the loopholes,” Mukul Rohatgi told NewsMadura in an exclusive interview.
Shares of the Adani conglomerate fell last month after US-based short selling firm Hindenburg Research alleged financial fraud and stock manipulation. The Adani group has vigorously refuted the allegations, calling Hindenburg’s report a “calculated attack” on India.
Earlier on Thursday, the Supreme Court set up a six-member panel to look at regulatory mechanisms to protect investors’ interests. The committee, headed by retired judge Abhay Manohar Sapre, will include veteran bankers KV Kamath and OP Bhat, Infosys co-founder Nandan Nilekani and retired judge JP Devdhar.
“I think it is appropriate, not because of Mr. Adani, but because there are millions of shareholders and bondholders who support certain big companies. If they have suffered, the court’s concern is fully justified,” said Rohatgi.
The selection of names is “par excellence” and the commission’s remit is “broad and comprehensive,” said Mr. Rohatgi. “It is right to instill confidence in the market and the people who are in the market,” he added.
The commission is expected to make an overall assessment of the situation, propose measures to raise investor awareness and strengthen existing stock market regulatory measures, the bank headed by Chief Justice of India DY Chandrachud said.
The investigation by market regulator SEBI (Securities and Exchange Board of India) runs parallel and must be completed within two months, the court said.
Senior lawyer Raian Karanjawala, who represents the Adani Group in several cases, also applauded the formation of the committee.
“It is an excellent decision. The committee meets all the standards that a committee could meet. It has people with high international qualifications. The Supreme Court could not have chosen a better committee,” he said.
He added that he expects it to be an “action-oriented committee” that will make its recommendations “in candor”. “Some of it can also be made public. People’s expectations will be met,” he added.
The opposition is split on the issue of the committee, with Trinamool Congress, Uddhav Thackeray and Arvind Kejriwal’s Aam Aadmi Party praising the Supreme Court’s decision. On the other side is Congress and its ally DMK. The left-wing parties are in a wait-and-see attitude.
The case had brought parliament to a standstill several times during the budget session, with opposition parties demanding an investigation by the Joint Parliamentary Committee.
Congress has planned nationwide protests the day parliament resumes.
