The controversy surrounding the Adani Group and Hindenburg Research has taken a political turn with some opposition parties demanding a joint parliamentary committee (JPC) to investigate the matter. However, senior lawyer Harish Salve believes that the Supreme Court's decision to appoint a committee of experts comprising six subject matter experts is a better option.
Talking to NDTV, Salve said that this investigation is crucial as it involves investors' trust and therefore, should be time-bound. He believes that investor confidence has been damaged by market volatility and that it is essential to know quickly what exactly happened to rebuild it. The Adani-Hindenburg row involves some complex financial matters that only subject matter experts can handle, he said. The committee of experts, which includes former Supreme Court judge Justice AM Sapre, former SBI chairman OP Bhat, retired Bombay High Court judge Justice JP Devadhar, former Infosys chairman KV Kamat, Infosys co-founder Nandan Nilekani, and lawyer Somasekharan Sundaresan, who is also a securities and regulatory expert, are well-equipped to handle this specialized field, he added.
Salve asserted that the demand for a JPC is only to embarrass the government and that the noises will become more shrill as the 2024 national election approaches. He pointed out that if the report from the committee of experts convinces everyone that there has been a political cover-up, then action can be taken in parliament, and a JPC can be formed.
"Today, the demand for a JPC is only to embarrass the government and the noises will become more shrill as 2024 comes closer," he told NDTV.
Also Read | Issue price of sovereign gold bonds scheme 2022-23 (Series-IV) notified
Salve also brought up another dimension to the controversy, highlighting that Hindenburg is not a Good Samaritan who has exposed wrongdoings. They have timed the report to short the market, he said and suggested that the committee must find all those who have made money at the cost of the middle-class investor by shorting shares and treat it as market manipulation. They should be forced to disgorge and ban them from trading, he added.
"There are two things - one is the allegations made by the Hindenburg report. They may be right, they may be wrong - Adani is my client, you know that - we will defend the allegations etc, but there is a completely different dimension to this. Hindenburg is no Good Samaritan who has exposed wrongdoings. They have timed the report, they have dropped the report, they do it for shorting," he said.
Salve further said that India is growing its capital markets, and the middle-class investor needs institutional mechanisms to hold accountable people who are systematically making money off the misfortune of shareholders. He emphasized that if the middle-class investor is petrified that every time they invest in a company, there's a Hindenburg report, and by the time it is proved to be false, it's too late, shares would tank anyway.
Salve's opinion differs from that of the opposition parties, with Congress and its allies wanting a JPC. Tamil Nadu's DMK has echoed the Congress's demand, but the Trinamool Congress welcomed the Supreme Court's decision and stated that it would not insist on a JPC. Former Maharashtra Chief Minister Uddhav Thackeray and Delhi's ruling Aam Aadmi Party have also welcomed the court's decision, leaving the Congress and a few of its allies isolated.
