‘Is this some debate in college?’: SC takes stern view of plea seeking probe into LIC and SBI

New Delhi: The Supreme Court on Friday took a stern view of pleas seeking probe into the Life Insurance Corporation (LIC) and the State Bank of India (SBI).

“You are asking the court – without a shred of evidence – to direct an investigation into SBI and LIC. Do you realise the impact of such a direction? Is this some debate in college?” a bench headed by CJI D.Y. Chandrachud said.

“Do you realise the impact of the investigation direction by the Supreme Court against SBI and LIC on the stability of our financial market?” the bench, also comprising Justices J.B. Pardiwala and Manoj Misra, added.

It said that the petitioners have produced no material before the apex court nor have counsel appearing on their behalf made “any argument”.

“As lawyers when you make the submissions, you must be responsible about the submission you make,” the top court cautioned petitioner’s counsel.

Against the backdrop of the Hindenburg report, pleas filed in the Supreme Court also prayed for a probe into the role of the LIC and the SBI for allegedly investing “huge amounts of public money” in the FPO of the Adani Group of companies.

“To direct the investigating agencies to investigate the role of Respondent No. 11 (LIC) & 12 (SBI) to invest huge amount of public money in the FPO of the Adani Enterprises @ Rs 3,200 per share whereas the prevailing market rate of shares of Adani Enterprises in the secondary market was Rs 1,800 per share approximately,” said a plea filed by Congress leader Jaya Thakur.

The apex court had earlier ordered the SEBI to probe into the allegations of stock price manipulation by the Adani Group within two months and had formed an expert committee with an objective to review and strengthen the existing financial regulatory mechanisms.

The controversial Hindenburg Research’s report, inter alia, alleged that the Adani Group of companies has manipulated its share prices; failed to disclose transactions with related parties and other relevant information concerning related parties in contravention of the regulations framed by SEBI; and violated other provisions of securities laws.

–IANS