Gautam Adani close relationship with PM Narendra Modi; Congress demands inquiry into Hindenberg report
By Lokmat English Desk | Published: January 27, 2023 04:33 PM2023-01-27T16:33:11+5:302023-01-27T16:33:11+5:30
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The Congress party has demanded that the SEBI and the RBI conduct investigations into the findings of an US-based investment research firm, Hindenburg Research, that in a report alleged corporate malpractice, stock price manipulation, and very high levels of debt by the Adani Group.
Congress’ General Secretary (Organisation) Jairam Ramesh Friday said that while a political party would not be reacting to a research report on an individual business group, the Adani Group is “no ordinary conglomerate”
It (Adani Group) is no ordinary conglomerate: it is closely identified with Prime Minister Narendra Modi since the time he was Chief Minister,” said Ramesh, in a statement.
The maliciously mischievous, unresearched report published by Hindenburg Research on 24 January 2023 has adversely affected the Adani Group, our shareholders and investors,” said Adani Group Head – Legal, Jatin Jalundhwala.
Meanwhile, the Congress warned that the “high exposure” of financial institutions such as the Life Insurance Corporation of India (LIC) and the State Bank of India (SBI) to the Adani Group “has implications for financial stability” and for the crores of Indians whose “savings are stewarded by these pillars of the financial system”.
The Hindenburg report alleges ‘brazen stock manipulation’ and ‘accounting fraud’ by the Adani Group via ‘a vast labyrinth of offshore shell entities’,” he added. Highlighting the economic liberalisation of 1991, the Congress leader mentioned that the reforms were aimed to “improve transparency and to level the playing field” for domestic and foreign investors.“For all its posturing about black money, has the Modi government chosen to turn a blind eye towards illicit activities by its favourite business group? Is there a quid pro quo? Will SEBI investigate these allegations to the fullest and not just in name?” asked Ramesh.He further accused the Modi government of exposing India’s financial system to “systemic risks” through large investments in the conglomerate via state financial entities.
