New Delhi (Agency): The Indian National Congress expressed grave concerns over the Securities and Exchange Board of India’s (SEBI) inability to conclude its investigation into allegations against the Adani Group. These allegations include round-tripping and money laundering. In a statement, Congress general secretary Jairam Ramesh stated that SEBI’s recent status report to the Supreme Court on this matter is “deeply troubling.”
Jairam Ramesh, sharing his concerns, noted, “SEBI’s inability to reach a final conclusion in the matter of round-tripping and money-laundering allegations against the Adani Group is deeply worrying.” He added that only a Joint Parliamentary Committee (JPC) can effectively investigate how the government might have bypassed norms to favor Prime Minister Narendra Modi’s “favorite business group.”
The Congress party also accused the Adani Group of financial misconduct involving Gujarat Urja Vikas Nigam Ltd (GUVNL). It alleged that GUVNL paid “extra” to Adani Power Mundra (APM) and questioned whether SEBI and central probe agencies would investigate this. Gujarat Congress president Shaktisinh Gohil claimed that such financial activities could not have taken place without the support of senior BJP leaders.
SEBI’s report indicated that of 24 matters related to the Adani Group, two remain unresolved. One of the pending issues concerns whether the Adani Group violated the Minimum Public Shareholding requirement under Rule 19A of the Securities Contracts (Regulation) Rules. Jairam Ramesh added that SEBI’s delay is due to awaiting information from external agencies.
The Congress also criticized SEBI’s decisions in 2018 and 2019 to relax and then eliminate reporting requirements about the ultimate beneficial ownership of foreign funds. According to Ramesh, these decisions have hindered SEBI’s ability to identify foreign ownership in Adani companies.
Ramesh further noted that SEBI’s decision to reinstate strict reporting rules on June 28, 2023, is a “public admission of guilt.” He questioned whether SEBI will identify the source of the Rs 20,000 crore of overseas funds that have flowed into the Adani Group.
This ongoing investigation gains more attention in light of allegations made by the US short-seller Hindenburg Research. Earlier this year, Hindenburg accused the Adani Group of accounting fraud, stock price manipulation, and improper use of tax havens, leading to market instability. The Adani Group has denied all these allegations.
With SEBI still waiting for information from five tax havens regarding foreign investment in the Adani conglomerate, the investigation remains inconclusive. Amidst these complexities, Congress insists that only a JPC can shed light on how the government might have flouted rules to support the Adani Group.