Editor's Pick: SC says no to Centre’s sealed cover idea on Adani case

The Supreme Court on Friday chose transparency over the government’s sealed cover containing “suggestions” for a committee proposed to examine Hindenburg Research’s damning report on the Adani Group, saying that public confidence would take a hit if an impression was created that the Centre was steering the process with the court’s nod. “We [would] rather not accept the sealed-cover suggestions from you [government]. If we accept your suggestions in a sealed cover, the other side [petitioners] will not be able to see them. We want to maintain full transparency,” Chief Justice of India D.Y. Chandrachud said, addressing Solicitor General Tushar Mehta, appearing for the government. The court said that accepting the government’s suggestions in a hush-hush manner would prove detrimental to the credibility of the committee and its future work in the eyes of the nation. Hindenburg Research has accused the Adani Group of “brazen stock manipulation and accounting fraud schemes.” The Chief Justice said the court would appoint a “committee of our own as it provides a sense of confidence in the process.” The court indicated that it would direct statutory agencies to cooperate with the proposed committee, while dismissing the idea of having one of its sitting judges on the committee. The CJI, heading a three-judge Bench, said the committee would examine the ability of the extant regulatory framework in the securities market to protect investors from sudden share value crashes. Until then, the court said, “we cannot start with the presumption of a regulatory failure”. In 2022 too, the Supreme Court had spoken out against ‘sealed cover’ jurisprudence in at least two instances -- a Malayalam news channel broadcasting case and the Muzaffarpur shelter home sexual abuse case. An editorial in The Hindu had pointed out that the main mischief of the ‘sealed cover’ practice lies in the scope it gives the state to avoid deep scrutiny of the need and proportionality of its restrictions on freedom. “The time has come for the Supreme Court to determine and circumscribe the circumstances in which confidential government reports, especially those withheld from the other side, can be used by courts in adjudication.” Keeping up its pressure, the Congress questioned the Modi government over a purported contract that the Indian Oil Corporation signed with the Adani Group to import liquefied petroleum gas through the group-owned Gangavaram Port in Visakhapatnam instead of the government-run Visakhapatnam Port. Comments by billionaire investor George Soros ahead of the Munich Security Conference that the turmoil in Mr. Adani’s business empire had shaken the faith in India and threatened investor confidence was vociferously protested by Union Minister Smriti Irani who said a “war” had been initiated to target India. With the Supreme Court opting for full transparency in the Adani Group case, the handling of which has drawn flak from both the Opposition and others, this story becomes an important one. The Hindu’s Editorials Going off-course: On the rural jobs scheme and the Centre’s bid to change its funding Executive fiat: On Rahul Gandhi’s Lok Sabha speech and breach of privilege The Hindu News Quiz Former Tripura Chief Minister Manik Sarkar has won which seat in the State five consecutive times? Dhanpur Mohanpur Sonamura Bishalgarh To know the answer and to play the full quiz, click here. [logo] Editor's Pick 18 FEBRUARY 2023 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( SC says no to Centre’s sealed cover idea on Adani case The Supreme Court on Friday chose [transparency over the government’s sealed cover]( containing “suggestions” for a committee proposed to examine Hindenburg Research’s damning report on the Adani Group, saying that public confidence would take a hit if an impression was created that the Centre was steering the process with the court’s nod. “We [would] rather not accept the sealed-cover suggestions from you [government]. If we accept your suggestions in a sealed cover, the other side [petitioners] will not be able to see them. We want to maintain full transparency,” Chief Justice of India D.Y. Chandrachud said, addressing Solicitor General Tushar Mehta, appearing for the government. The court said that accepting the government’s suggestions in a hush-hush manner would prove detrimental to the credibility of the committee and its future work in the eyes of the nation. [Hindenburg Research]( has accused the Adani Group of “brazen stock manipulation and accounting fraud schemes.” The Chief Justice said the court would appoint a “committee of our own as it provides a sense of confidence in the process.” The court indicated that it would direct statutory agencies to cooperate with the proposed committee, while dismissing the idea of having one of its sitting judges on the committee. The CJI, heading a three-judge Bench, said the committee would examine the ability of the extant regulatory framework in the securities market to protect investors from sudden share value crashes. Until then, the court said, “we cannot start with the presumption of a regulatory failure”. In 2022 too, the Supreme Court had spoken out against ‘sealed cover’ jurisprudence in at least two instances -- a Malayalam news channel broadcasting case and the Muzaffarpur shelter home sexual abuse case. [An editorial in The Hindu]( had pointed out that the main mischief of the ‘sealed cover’ practice lies in the scope it gives the state to avoid deep scrutiny of the need and proportionality of its restrictions on freedom. “The time has come for the Supreme Court to determine and circumscribe the circumstances in which confidential government reports, especially those withheld from the other side, can be used by courts in adjudication.” Keeping up its pressure, the Congress questioned the Modi government over a purported contract that the[Indian Oil Corporation signed with the Adani Group]( to import liquefied petroleum gas through the group-owned Gangavaram Port in Visakhapatnam instead of the government-run Visakhapatnam Port. Comments by billionaire investor George Soros ahead of the Munich Security Conference that the turmoil in Mr. Adani’s business empire had shaken the faith in India and threatened investor confidence was [vociferously protested by Union Minister Smriti Irani]( who said a “war” had been initiated to target India. With the Supreme Court opting for full transparency in the Adani Group case, the handling of which has drawn flak from both the Opposition and others, this story becomes an important one. The Hindu’s Editorials [Arrow][Going off-course: On the rural jobs scheme and the Centre’s bid to change its funding]( [Arrow][Executive fiat: On Rahul Gandhi’s Lok Sabha speech and breach of privilege]( The Hindu News Quiz Former Tripura Chief Minister Manik Sarkar has won which seat in the State five consecutive times? - Dhanpur - Mohanpur - Sonamura - Bishalgarh To know the answer and to play the full quiz, [click here](. Are you a book lover looking for your next literary adventure? 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