Supreme Court Dismisses Request to Restrict Media Coverage on Adani-Hindenburg Dispute Over Short-Seller Report

Advocate ML Sharma raised the matter in the Supreme Court, but a bench led by Chief Justice DY Chandrachud dismissed his plea.

The Supreme Court has denied a request to issue an injunction against the media regarding the Adani-Hindenburg dispute over a short-seller report. The court clarified that such injunction will not be granted until it delivers its verdict.

The Supreme Court reserved its decision on several PILs concerning the Adani Group’s recent shares crash triggered by Hindenburg Research’s report of accounting fraud and stock manipulation, which the group has refuted. 

Advocate ML Sharma raised the matter, but a bench led by Chief Justice DY Chandrachud denied his plea and clarified that the court would not issue an injunction to the media regarding the Hindenburg report. The bench, which also included Justices PS Narasimha and JB Pardiwala, made this announcement.

Advocate ML Sharma emphasized his request for a media ban on the Hindenburg report and news related to it during his application. Sharma, the petitioner, also urged an inquiry into Hindenburg, whose report resulted in a frantic sell-off of shares owned by the Adani Group and caused a global decline in their stocks.

In a batch of public interest litigations (PILs), the Supreme Court declined to consider a report published by Forbes and a suggestion made by one of the petitioners on Monday. On February 17, the apex court had rejected the Centre’s proposal for a panel of experts to enhance regulatory measures for the stock market, which it had requested be submitted in a sealed envelope.