The Supreme Court, in a recent session, adopted a firm stance on pleas urging an investigation into the operations of Life Insurance Corporation (LIC) and the State Bank of India (SBI).
A bench led by CJI D.Y. Chandrachud expressed strong reservations, highlighting the lack of substantial evidence accompanying the pleas. "You are seeking an investigation into SBI and LIC without a shred of evidence. Have you considered the implications of such a directive? Is this akin to a debate in a college setting?" remarked the bench, also comprising Justices J.B. Pardiwala and Manoj Misra.
The court emphasized the dearth of presented material or persuasive arguments from the petitioners or their legal representatives. "As legal representatives presenting submissions, there's a responsibility for the assertions you make," cautioned the apex court.
The petitions brought to the court's attention, in the context of the Hindenburg report, urged an inquiry into the involvement of LIC and SBI for purportedly investing significant public funds in the Adani Group's FPO.
One of the pleas, filed by Congress leader Jaya Thakur, sought an investigation into the investment of substantial public funds by LIC and SBI in the Adani Enterprises' FPO at Rs 3,200 per share, notably higher than the prevailing market rate of approximately Rs 1,800 per share.
Previously, the Supreme Court had directed SEBI to investigate allegations of stock price manipulation by the Adani Group within a two-month timeline. Additionally, an expert committee was formed with the aim of evaluating and fortifying existing financial regulatory mechanisms.
The contentious Hindenburg Research report made various allegations against the Adani Group, including claims of share price manipulation, non-disclosure of transactions with related parties, and violation of SEBI regulations and securities laws.
The judiciary's firm stance underscores the need for substantial evidence and responsible assertions in matters that carry significant implications for the financial market and institutions like LIC and SBI.
(With Agency Inputs)
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