NEW DELHI: Another Public Interest Litigation (PIL) has been filed in connection with the publication of a report by US-based short-selling company Hindenburg Research against the Adani Group.
The new public PIL, filed by advocate Vishal Tiwari, has also sought directions to set up a special committee to oversee the sanction policy for loans of more than Rs 500 crore given to big corporates.
Last week, another litigation was filed in the Supreme court seeking prosecution of short seller Nathan Anderson of US-based firm Hindenburg Research and his associates in India and the US for allegedly exploiting innocent investors and the "artificial crashing" of Adani Group's stock valuation in the market.
After Hindenburg Research levelled a slew of accusations against the Gautam Adani-led corporate conglomerate, including illegal transactions and share-price manipulation, the Adani Group equities have suffered on the stock exchanges.
The Adani Group has denied the accusations, claiming that it abides by all legal and disclosure obligations.
Tiwari claimed in his argument that the petition shows the "drastic state and fate of people" when a situation of share decline in the securities market occurs for a number of different reasons.
The PIL stated that "many persons who had the entirety of their lifetime savings in such stocks experience a maximum setback owing to decrease in such shares with a big quantity of money getting into drain."
It claimed that following the announcement of the publication of the Hindenburg report, some investors who had staked their entire financial future in such shares suffered a significant loss.
The market value of all 10 Adani stocks has decreased by halves as a result of the unprecedented attack by Hindenburg on the massive business of billionaire Gautam Adani, according to the petition.
It stated that despite a "huge attack being conducted" on the nation's economy, no decisive action has been done by authorities.
"The respondents (Centre and others) are ultimately responsible for using public funds, and there needs to be strict care for mitigating such loans with a defined process and sanction policy for such high stake loan amount," the statement read.
The Centre and other parties, such as the Reserve Bank of India and the Securities and Exchange Board of India, have been included as respondents in the appeal.
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