Title: Vishal Tiwari v UOI
Citation: Writ Petition (C) No. 162 of 2023
Dated on: 3.1.2024
Corum: HON’BLE MS. JUSTICE DR DHANANJAYA Y CHANDRACHUD, CJI
Facts of the case
In this present case the writ petition was filed by a bunch of petitioners before the supreme court under Article 32 of the Indian Constitution – To seek enforcement of Fundamental Rights. The petition raised concern over the decrease in the number of investors volatility and wealth in the present share market due to fall in the share prices of the Adani Group companies. It was alleged that the Adani group manipulated their share price and violated the SEBI regulations and provisions of securities legislation.
In this contention, the petitioners contended that the SEBI overlooked upon the securities and exchange in India and failed to conduct a verified investigation into the market manipulation by the Adani Groups. Due to the mishandling of SEBI’s investigation the petitioners urged the transform of case to special investigation team or to an alternate agency.
Additionally, the petitioners have also raised concerns to the Supreme court about the composition of the opinion of expert committee in this matter. They alleged that certain members of this expert committee have a conflict of interest and may be predisposed to bias, thereby questioning the impartiality in the proceeding. Their claim also emphasis on the importance of the unbiased and objective evaluation of the allegation made against the Adani group.
Legal Provision
In the present case the petitioners filed a writ in the supreme court under the article 32 of the Indian constitution Article 32 of the Constitution: This article grants the right to constitutional remedies to the citizens of India, allowing them to approach the Supreme Court for the enforcement of their fundamental rights.
Issues
1.Whether there was a regulatory failure by SEBI?
2.Whether the members of the Expert Committee had a conflict of interest?
3.What are the recommendations of the Expert Committee?
Court analysis and Judgement
The hon’ble court after analysing the merits of the case came to the conclusion that the SEBI did not fail in following the regulatory procedure and it acted promptly in conducting the investigation and took up appropriate actions and the court ordered for a restrictive time frame for the SEBI to complete its investigation and not extend it indefinitely. The court also observed that it cannot transfer the investigation from SEBI to another agency or a special investigation team as there is no strong evidence indicating that SEBI has portrayed inadequacy or bias in the investigation. The allegation against the expert committee and their conflict of interest is unsubstantiated and the court suggests to the government of India and SEBI to consider the suggestions made by the expert committee. Lastly the court disposed off the petition.
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Written by- Namitha Ramesh
