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“It restores the importance of the rule of law and separation of powers,” Harish Salve said.

New Delhi:

The Supreme Court judgment backing the Securities and Exchanges Board of India or SEBI in the Hindenburg allegations against the Adani Group makes it clear that the rule of law has made a comeback, veteran lawyer Harish Salve said today.

The former Attorney General also said the other high point of the judgment is the underscoring of the separation of powers, which in the long run, will help democracy flourish. “In the long run, democracy cannot survive if these two vital principles are sidestepped,” he said.

In an exclusive interview to NDTV this evening, Mr Salve, who has represented India many times in international courts, said the judgment is “more than just a vindication” for the Adani Group.  

“It restores the importance of the rule of law and separation of powers,” Mr Salve said, citing how in the years after 2014, there was an atmosphere of distrust in the country following allegations of scams.

“The rule of law became a casualty. The principle of separation of powers was breached when courts started to interfere with the investigating agencies and regulatory agencies,” he added, declaring that took nine years for the restoration of constitutional powers.

In its judgment today, a bench led by Chief Justice of India DY Chandrachud said the allegations of OCCRP – an organisation funded by billionaire George Soros and others – can’t be the basis for doubting SEBI’s investigation into the Hindenburg case.

The SEBI has investigated 22 out of the 24 cases linked to the allegations of US-based short seller Hindenburg Research.

Responding to the petitioners’ appeal for the case to be transferred, the bench of Justices DY Chandrachud, JB Pardiwala and Manoj Misra, said the power to transfer investigation “must be exercised in exceptional circumstances”.

“Such powers cannot be exercised in the absence of cogent justifications,” the court said, remarking that there is no evidence to justify such a transfer.

The SEBI has been given three months to complete investigation in the remaining two cases.

“The rule of law is supreme” and under it, unsubstantiated allegations can only be treated as inputs and not evidence, by the regulatory agencies,” Mr Salve said.