Adani Enterprises faced a setback in its defamation case as a Delhi court ruled that journalist Paranjoy Guha Thakurta is not required to follow a directive to remove alleged defamatory content against the company until further orders.

Court Proceedings

District Judge Sunil Chaudhary heard Thakurta's appeal against a September 6 order that had restrained him and others from publishing purported unverified and defamatory content against Adani Enterprises Limited (AEL). The court directed that fresh orders be passed after hearing Thakurta along with other defendants.

This development follows a previous ruling where another district judge had allowed appeals by four other journalists and set aside the civil judge's order, stating the removal directive was too sweeping.

Background

The original September 6 order required 10 defendants, including multiple journalists and organizations, to take down contentious material from various platforms following AEL's defamation complaint.

Implications

This ruling highlights the ongoing legal battle between Adani Enterprises and journalists over alleged defamatory content, raising questions about press freedom and corporate accountability in India.

The case continues to draw attention to the balance between protecting corporate reputations and maintaining freedom of expression in journalism.

Gautam Adani, the chairman of Adani Enterprises , has penned a letter to shareholders following the Securities and Exchange Board of India's (SEBI) dismissal of allegations made in the Hindenburg Research report dated January 24, 2023. In his address, Adani emphasized the significance of SEBI's verdict, viewing it as a validation of the group's transparency and governance practices.

SEBI's Verdict and Adani's Response

Adani characterized the Hindenburg report as a challenge to Indian enterprises' global ambitions. He expressed that SEBI's findings have affirmed the company's commitment to maintaining high standards of corporate governance and transparency.

Financial Performance Highlights

Despite the turbulence caused by the Hindenburg allegations, Adani Group reported robust financial growth:

Key Project Completions

Adani highlighted several significant projects that were successfully completed:

1. India's first container transshipment port at Vizhinjam
2. Addition of 6 GW of renewable energy capacity, including the Khavda project
3. Establishment of the world's largest copper smelter

Commitment to Stakeholders

Acknowledging the anxiety experienced by investors and partners during this challenging period, Adani reaffirmed the group's dedication to:

• Strengthening governance standards
• Accelerating innovation and sustainability efforts
• Continuing investments in infrastructure development

The chairman's message underscores the Adani Group's resilience and its focus on long-term value creation, despite facing scrutiny and market volatility in the wake of the Hindenburg report.

Market Response and Investor Sentiment

Following SEBI's dismissal of Hindenburg Research's allegations, Adani Group stocks gained nearly $20 billion in market value over two trading sessions. Veteran investor Mark Mobius expressed optimism about the group's prospects, stating that India needs more infrastructure companies like Adani. He predicted the group's recovery will continue, emphasizing India's growth potential.

Mobius noted that investors conducting proper research would have recognized the accusations as baseless. The SEBI verdict removes a significant regulatory concern for the conglomerate, which faced challenges since Hindenburg's January 2023 report alleging accounting fraud and stock manipulation.

Global Investor Interest

Global investor interest is returning to Adani Group. Jefferies' Chris Wood has purchased Ambuja Cements shares and added to existing Adani Ports holdings. Morgan Stanley forecasts Adani Power's capacity will grow from 18.15 GW to 41.90 GW, potentially increasing its coal-based market share from 8% to 15%.

The positive developments and renewed investor confidence mark a significant turnaround for Adani Group, which had initially seen over $100 billion in market value erased following the Hindenburg report.