ET NEWS

"Why are companies outside India so concerned about how we conduct our affairs?" the Supreme Court asked on Friday as it dismissed a PIL seeking a probe into allegations by a US-based short-seller against Vedanta group firms. A bench of Justices P S Narasimha and A S Chandurkar dismissed the PIL filed by a lawyer called Shakti Bhatia as withdrawn after senior advocate Gopal Sankaranarayanan said he will be withdrawing the petition. "Why are these companies outside India so concerned about how we conduct our affairs and under what law?" the bench asked after Solicitor General Tushar Mehta, appearing for the Centre, Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) said Viceroy Research LLC was a short-seller and the petitioner is just a "name-lender". Mehta pointed to an email written to SEBI chairperson and other authorities by Viceroy just after the petition was filed in the apex court and said these institutions have absolutely "no credibility". "There is a systematic pattern where outside agencies create reports and influence the Indian stock market," he said.Sankaranarayanan submitted that the relief sought in the petition is very narrow and only seeks that SEBI and RBI investigate the allegations and take necessary action. Sankaranarayanan also said he does not endorse the allegations levelled by the Viceroy nor the methodology adopted by the petitioner but wants to allay concerns, and the SEBI can very well investigate the irregularities pointed out and take lawful action. The bench said if it issues notice and seeks their counter affidavit, it will dismiss the petition with a huge cost. Sankaranarayanan said this petition does not call for such sweeping reliefs, unlike the Adani-Hindenburg litigation where the apex court had constituted an expert panel. Mehta questioned the maintainability of the petition and pointed to the modus operandi of foreign short-sellers. He said such firms seek to destabilise Indian companies and markets by releasing reports and then amplifying their effect through litigation. "The highest court of the land cannot be taken for a joyride. Let this petition be dismissed to send a strong message," Mehta submitted. The bench said since the petitioner is seeking to withdraw his PIL, the court would not like to go further into it. Earlier, two judges-- Justices Sanjay Kumar and K Vinod Chandran of the apex court -- had recused themselves from hearing the matter. Viceroy Research LLC is an investigative financial research group registered in Delaware, US, and recently made certain allegations of financial irregularities against Vedanta Limited, Vedanta Resources Limited, Hindustan Zinc Limited and related entities. The petitioner Shakti Bhatia, a lawyer by profession has moved the apex court claiming that he has independently corroborated portions of the Viceroy's allegations and sought probe by regulatory agencies like SEBI and the RBI.