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

The nation’s highest court docket 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 court docket 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 firms below the conglomerate.

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

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 offers a chance for Indian establishments to study 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.”

The mogul’s speedy 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 significantly weaken Modi’s grip on energy and result in a “democratic revival” within the nation.

Soros’ criticism, particularly, targeted on the comfy 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.