Bombay High Court discharges industrialist Gautam Adani from Serious Fraud Investigation Office case

The Bombay High Court on Monday discharged Gautam Adani, Chairman of Adani Enterprises Limited (AEL) and Rajesh Adani, Managing Director of AEL, in a Serious Fraud Investigation Office (SFIO) case, alleging violation of market regulations to the tune of Rs 388 crore.

The single-judge Bench of Justice RN Laddha quashed the order passed by a sessions court in Mumbai in November 2019 that overturned a magistrate court verdict of 2014.

The SFIO had filed a charge sheet against 12 persons, including Adanis, accusing them of hatching a criminal conspiracy and cheating. As per the agency, the Adanis manipulated the share prices of AEL through entities controlled by stockbroker Ketan Parekh, the main accused in a stock market scam case of 1999-2000.

A Magistrate court in Mumbai discharged the Adanis and ASEL from the case in 2014 on the grounds that the evidence adduced by SFIO fell short of making out a strong case for prosecution of the accused.

The SFIO challenged the Magistrate’s order before a sessions court, which set aside the discharge order in November 2019.

Sessions Judge DE Kothalikar held that the probe by SFIO prima facie established that the promoters of the Adani Group and Ketan Parekh made unlawful gain of around Rs 388.11 crore and Rs 151.40 crore, respectively, via alleged manipulation of the shares of AEL, the flagship firm of Adani Group.

It further ruled that the SFIO made out a strong case of unlawful gain by the Adani Group.

The industrialists moved the High Court in December 2019 against the sessions court order, terming it arbitrary and illegal.

The High Court stayed the sessions court verdict in December 2019. The interim relief was extended from time-to-time till March 12, when Justice Laddha reserved his verdict in the case.