Stop media from carrying allegations on Adani unless verified by SEBI: Lawyer’s plea in SC

A case was filed in the Supreme Court to prohibit the media from publishing statements or allegations relating to Adani group companies unless they are filed and verified by the market regulator SEBI.

The preliminary request for media restriction was filed by lawyer ML Sharma on Monday as part of his PIL, filed on February 3, which is yet to be listed before the court for hearing.

“The media hype sent the Indian stock market crashing by more than 50 percent. Regular allegations/statements in the media create panic among investors who panic sell their shares and suffer financial losses. Ordinary investors are being massacred, which must be stopped in the interest of justice,” the preliminary lawsuit says.

The lawyer sought a "gag order" on the statement or other related intelligence reports unless they were submitted and verified by the Securities and Exchange Board of India (SEBI). In his PIL, Sharma is seeking prosecution of short seller Nathan Anderson of US firm Hindenburg Research and his associates in India and the US for allegedly exploiting innocent investors and "artificially depressing" the market value of Adani Group shares.

Adani Group shares took a beating on the bourses after Hindenburg Research made a litany of allegations in its January 24 report, including fraudulent transactions and share price manipulation in the Gautam Adani-led group. The group claims to comply with all laws and disclosure requirements.