Bombay High Court Clears Gautam Adani, Rajesh Adani in ₹388 Crore Market Violation Case
The Bombay High Court has discharged Adani Enterprises Ltd, along with its Chairman Gautam Adani and Managing Director Rajesh Adani, from a long-standing case related to alleged market regulation violations amounting to ₹388 crore. The court ruled that there was no evidence to support claims of cheating or criminal conspiracy.
Background of the Case
The Serious Fraud Investigation Office (SFIO) initiated the case in 2012, accusing Adani Enterprises and its promoters of stock market manipulation and unlawful financial gains. A chargesheet was filed, leading to legal proceedings that spanned over a decade.
In 2014, a magistrate’s court in Mumbai dismissed the charges against the Adanis, stating there was no substantial evidence. However, the SFIO challenged this decision, and in 2019, a sessions court overturned the discharge order, allowing the case to proceed. The industrialists then approached the Bombay High Court, seeking to quash the sessions court’s order.
Court’s Ruling and Key Observations
On Monday, Justice R N Laddha ruled in favor of Adani Enterprises and its leaders, emphasizing that the SFIO’s complaint did not meet the fundamental legal criteria for the offence of cheating. The court pointed out that:
No specific victim or affected party had come forward claiming financial losses due to the alleged violations.
The allegations lacked the essential element of deception required to establish a case of cheating under Section 420 of the Indian Penal Code.
Without a clear instance of cheating, the charge of criminal conspiracy also could not be sustained.
SFIO’s Appeal Request Denied
Following the verdict, the SFIO requested the court to stay its order for two weeks, allowing time to appeal to the Supreme Court. However, Justice Laddha denied the request.
Legal Battle Over the Years
The case has seen multiple legal turns:
2012: SFIO files a chargesheet against Adani Enterprises and 11 others.
2014: A magistrate’s court discharges the Adanis.
2019: Sessions court overturns the discharge order, reviving the case.
2019: Adani Enterprises challenges the sessions court ruling in the Bombay High Court.
2024: High Court quashes the case, ruling in favor of Adani Enterprises.
Defense and Allegations
Senior lawyer Amit Desai, representing the Adanis, argued that no public complaints or financial loss claims had been filed against them, making the SFIO’s case baseless. On the other hand, SFIO’s counsel Anil Singh alleged that Adani Enterprises engaged in stock manipulation, unfairly profiting at the expense of other stakeholders.
With the Bombay High Court’s decision, the case against the Adanis stands closed unless further appealed by the SFIO in the Supreme Court.
News Source : Information for this article was gathered from a variety of reliable news outlets.
