INDIA Bloc Targets Government Over Hindenburg Allegations, Demands JPC Probe into SEBI

The recent allegations by U.S. short-seller Hindenburg Research against SEBI Chairperson Madhabi Puri Buch and her husband have sparked sharp political reactions from opposition parties. Reacting to the Hindenburg report, Samajwadi Party spokesperson Ghanshyam Tiwari on Sunday criticized the Modi government, claiming that Prime Minister Narendra Modi's tenure will be remembered for "Adani-waad." 

"The entire world witnessed a session marked by different ideologies, but the term of PM Modi will be known as 'Adani-waad.' In this Adani-waad, the entire economic system of India seems to have been captured to benefit Gautam Adani and the Adani Group. It appears that this is the sole motive of PM Modi," Tiwari said. Referring to the Hindenburg Report's allegations that SEBI chief Madhabi Buch and her husband had stakes in offshore entities tied to the Adani money siphoning scandal, Tiwari added, "Hindenburg's report questions the integrity of the market regulator. Hindenburg alleged that SEBI is not conducting a proper investigation. The opposition has continuously raised concerns about the Adani Group, from coal scams to offshore investments in the stock market. SEBI, whose responsibility it is to investigate and identify wrongdoers, seems to be deviating from its core duties."

Also Read: How Hindenburg Research's Allegations Against SEBI Chairperson Madhabi Buch Will Affect the Indian Market

Aam Aadmi Party MP Sanjay Singh also criticized the Modi government, alleging widespread corruption and accusing the government of trying to protect "their friend Adani." In a social media post on X, Sanjay Singh wrote, "The Hindenburg revelations were hinted at three days before Modi ended the Parliament session. The Modi government is steeped in corruption from head to toe. To save his friend Adani, Modi Ji arranged for an investigation by the same SEBI Chairperson who was allegedly involved in the scam with Adani. The Supreme Court should reconsider its decision."

Congress MP Manish Tewari called for the formation of a Joint Parliamentary Committee (JPC) to investigate the entire Hindenburg saga. "There are certain revelations by Hindenburg Research that have been brought into the public domain, and they require closer scrutiny. There seems to be an alleged conflict of interest, and under such circumstances, there has been a public demand for some time for a thorough investigation by a joint parliamentary committee. It would be appropriate to constitute such a committee to examine all these issues in detail," Tewari stated.

Earlier in the day, shortly after Hindenburg Research alleged on August 10 that SEBI Chairperson Madhabi Buch and her husband held stakes in "the same obscure offshore entities used in the Adani money siphoning scandal," the Buch couple issued a joint statement rejecting the allegations.

Madhabi Puri Buch and her husband accused Hindenburg Research, against whom SEBI has taken enforcement action, of character assassination. In their joint statement released to the media, they said, "Our lives and finances are an open book. We have already furnished all required disclosures to SEBI over the years. We have no hesitation in disclosing any and all financial documents, including those from when we were private citizens, to any authority that may request them. It is unfortunate that Hindenburg Research, against whom SEBI has taken enforcement action and issued a show cause notice, has chosen to engage in character assassination in response."

On Saturday, Hindenburg had alleged, "We previously noted Adani's confidence in operating without the risk of serious regulatory intervention, which may be explained by Adani's relationship with SEBI Chairperson Madhabi Buch." The U.S. hedge firm further claimed, "What we hadn't realized is that the current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani."

Hindenburg Research stated that the new allegations were based on documents provided by a whistleblower and investigations conducted by other entities. 

In January 2023, Hindenburg published a report accusing the Adani Group of financial irregularities, leading to a significant drop in the company's stock price. At the time, the group denied these claims. The report alleged stock manipulation and fraud by the conglomerate, which led to a sharp fall in the shares of various Adani Group companies.

In January 2024, the Supreme Court refused to transfer the probe into the allegations of stock price manipulation by the Adani Group to a Special Investigation Team (SIT) and directed SEBI to complete its investigation into two pending cases within three months. Earlier this year, the Supreme Court also dismissed a plea seeking to review the verdict that sought an investigation by SEBI in the Adani-Hindenburg case.