India’s supreme courtroom has arrange an impartial panel to analyze if there have been regulatory failures associated to allegations towards the Adani Group, after a bombshell report from a U.S. brief vendor.

The nation’s highest courtroom directed a six member panel to probe “regulatory failure in dealing with the alleged contravention of laws pertaining to the securities market in relation to the Adani Group,” a Thursday court order said.

The committee can even present an “overall assessment of the situation including the relevant causal factors which have led to the volatility in the securities market in the recent past,” added the courtroom order.

In addition, the panel will counsel measures to strengthen the regulatory framework and “secure compliance with the existing framework for the protection of investors.”

India’s Supreme Court motion comes barely over a month after Hindenburg Research launched a prolonged report on Jan. 24, accusing Adani Group of inventory manipulation and fraud. In a rebuttal that ran over 400 pages, the group denied any wrongdoing.

The debacle led to an enormous selloff within the Group’s shares and has worn out roughly $140 billion in market worth from the seven largest listed corporations underneath the conglomerate.

The panel shall be headed by Justice Sapre, a retired decide of the Supreme Court. The different members of the committee embrace OP Bhatt, KV Kamath, Nandan Nilekani and Somsekhar Sundaresan and retired Justice JP Devdhar.

The Supreme Court has additionally directed the nation’s markets regulator, the Securities and Exchange Board of India, to probe “whether there was any manipulation of stock prices in contravention of existing laws,” the courtroom order mentioned.

“SEBI shall expeditiously conclude the investigation within two months and file a status report,” it added. 

India’s high courtroom mentioned its directive was prompted by the “loss of investor wealth in the securities market over the last few weeks because of a steep decline in the share price of the Adani Group of companies,” and a necessity to guard Indian buyers from market volatility.

Those petitions included requests to look at points over “public money” being “at risk because public institutions like the State Bank of India and the Life Insurance Corporation of India are exposed to the Adani Group,” the courtroom order mentioned.

Both establishments told CNBC recently that their publicity to the Adani Group was manageable.

In a recent blog, Aswath Damodaran, finance professor at New York University’s Stern School of Business, argued the Adani Group has exploited the “weakest links” in India’s establishments to its benefit. He additionally mentioned the Adani affair gives a possibility for Indian establishments to be taught classes and attempt to repair the issues.

“As for the institutions involved, which include banks, regulatory authorities and [Life Insurance Corporation], I have learned not to attribute to venality or corruption that which can be attributed to inertia and indifference,” the economist mentioned on his weblog.

“A more nuanced version of the Adani story is that the family group has exploited the seams and weakest links in the India story, to its advantage,” he mentioned, including that “there are lessons for the nation as a whole, as it looks towards what it hopes will be its decade of growth.”

Billionaire founder Gautam Adani, whose household runs the ports-to-energy conglomerate, mentioned he welcomed the Supreme Court’s order.

“The Adani Group welcomes the order of the Hon’ble Supreme Court,” Adani wrote on Twitter on Thursday. “It will bring finality in a time bound manner. Truth will prevail.”

The mogul’s fast downfall has sparked renewed scrutiny on his shut ties with India’s Prime Minister Narendra Modi.

Last month, billionaire investor George Soros alleged the Adani turmoil will tremendously weaken Modi’s grip on energy and result in a “democratic revival” within the nation.

Soros’ criticism, particularly, centered on the comfortable relationship between Modi and Adani. Both males hail from India’s Western state of Gujarat. Adani was an early supporter of Modi’s political aspirations and championed the Indian leader’s growth vision for the nation.

“Modi and business tycoon Adani are close allies; their fate is intertwined. Adani Enterprises tried to raise funds in the stock market, but he failed,” mentioned Soros.

“Adani is accused of stock manipulation and his stock collapsed like a house of cards. Modi is silent on the subject, but he will have to answer questions from foreign investors and in parliament,” the investor added.