Infrastructure News

Former Adani contractor seeks SC nod to intervene in Sebi case, ET Infra


In a fresh twist to the Hindenburg-Adani issue, a former Adani contractor has sought intervention in the matter before the Supreme Court. Ajay Kumar Agarwal, a director of EBPL Ventures, which was the electrical contractor for Adani’s Sarguja Rail Corridor project, filed an application on Tuesday seeking the apex court’s permission to intervene in the Sebi-Adani matter.

In his petition, Agarwal said he is an interested party as he has worked for the Adani Group as a contractor for its projects and has closely observed the working of the conglomerate and that he would like to assist the apex court to protect the larger interest of investors.

Agarwal submitted to the court that: “He has personally witnessed the transfer of money from one subsidiary to another subsidiary to make payment during his work.”

He said the Adani Group had formed a private limited company to complete the work of the Sarguja rail corridor under the name Sarguja Rail Corridor Pvt Ltd (SRCPL).

The SRCPL awarded the EPC contract for execution of this project in Chhattisgarh. The said work was further sub-contracted by SRCPL to EBPL Ventures.

Agarwal said EBPL ventures carried out the said work for SRCPL.

“In view of the same it is submitted that the applicant has worked with Adani Group (SRCPL) and observed its work culture closely,” Agarwal said in his application. In 2022, SRCPL was acquired by the listed Adani Ports. At that time, Adani Ports said SRCPL will add Rs 450 crore or 5% of the ports operator’s consolidated operating profit.

Last week, one of the petitioners filed an affidavit with the SC saying that the Securities and Exchange Board of India allegedly “concealed” a 2014 alert by the Directorate of Revenue Intelligence (DRI) on possible diversion of funds and stock markmanipulation by Adani Group companies.

The apex court had asked Sebi to conduct an enquiry into the fraud and stock manipulation allegations made by the US-based Hindenburg against the Adani Group in January.

Sebi submitted a status report to the court on August 25, saying it had completed the investigation into whether Adani Group companies had violated securities laws.

The Sebi had “concealed a January 2014 DRI alert about Adani having siphoned off money and invested them in Adani listed companies through entities based in Dubai and Mauritius,” petitioner Anamika Jaiswal said in her affidavit filed on September 8.

  • Published On Sep 15, 2023 at 03:17 PM IST

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