Congress demands ‘serious investigation’ by RBI and SEBI against Adani Group

According to a research published by US-based short seller Hindenburg Research, which accuses Adani Group of "brazen stock manipulation and accounting fraud," the Congress has asked that RBI and SEBI conduct thorough investigations into Adani Group.

Congress demands ‘serious investigation’ by RBI and SEBI against Adani Group

Jairam Ramesh, the general secretary in charge of communications for the Congress, alleged in a statement that the Adani Group's exposure to financial institutions like the State Bank of India (SBI) and the Life Insurance Corporation (LIC) will have serious implications for the financial stability of the nation and millions of depositors "whose savings are stewarded by these pillars of the financial stability."

Further he said,

"Normally a political party should not be reacting to a research report on an individual company or business group prepared by a hedge fund. But the forensic analysis by Hindenburg Research of the Adani Group demands a response from the Congress party,"

He also stated,

“This is because the Adani Group is no ordinary conglomerate: it is closely identified with Prime Minister Narendra Modi since the time he was Chief Minister.”

Also Read: Adani Enterprises FPO opens: Will Hindenburg report affect the bidding? 

Adani Group “Charges against it were malicious , unsubstantiated and one sided”

The Adani Group has expressed strong disapproval of these, calling them "malicious, unfounded, one-sided, and was timed to undermine the public listing of its shares."
Ramesh further substantiated,

“The allegations of financial malfeasance would be bad enough, but what is worse is that the Modi government may have exposed India’s financial system to systemic risks through the liberal investments in the Adani Group made by strategic state entities like LIC, SBI and other public sector banks,”

The Congress leaders said that up to 8% of LIC's equity assets under management, or Rs 74,000 crore, were placed in the Adani Group of Companies, while public sector banks extended twice as much credit to the Adani Group as private banks, with SBI accounting for 40% of the total.

The Congress leader accused the Modi administration and the Adani Group of engaging in a pro-quid case.
“In perhaps, the most egregious case of crony capitalism, the previous operator of Mumbai’s Chhatrapati Shivaji Maharaj International Airport, India’s second busiest airport, was raided by the Enforcement Directorate (ED) and the Central Board of Investigation (CBI) after it rejected an offer by the Adani Group”.

He further clarified,

“The operator agreed to sell the airport to Adani a month later and it is a mystery what happened to the ED and CBI cases thereafter,”

Manish Tiwari “if Hindenburg report partially correct it merits Joint Parliamentary Committee & Supreme Court Monitored Investigation"

Lok Sabha Member Manish Tiwari stated on Twitter that if Hindenburg report turns out to be partially correct “it merits both a Joint Parliamentary Committee – much like the 1992 JPC & a Supreme Court Monitored investigation to get to the bottom of the matter. The Budget session begins 31st Jan 2023.
Communist Party of India General Secretary D.Raja has made a fervent plea and has stated that economic policies pursued by Narendra Modi Government had resulted in Corporate Houses such as Adani Group getting control over seaports, airports and other public undertakings.

He stated,

“Now, this report has exposed everything. Prime Minister Modi must explain to the nation and there must be a thorough investigation,”

Also Read: Rahul Gandhi pays tribute to Pulwama martyrs days after Congress leader Digvijaya Singh 2019 Pulwama terror attack

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