Congress leader Jairam Ramesh | Photo Credit: PTI
The Congress on Friday demanded a “serious probe” by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) into a report by US-based short-seller Hindenburg Research, which accused the Adani group of “shamelessness”. Was. stock manipulation and accounting fraud”.
Jairam Ramesh, Congress general secretary in-charge of communications, said in a statement that exposure of financial institutions such as Life Insurance Corporation of India (LIC) and State Bank of India (SBI) to the Adani group would impact the country’s financial health. stability and the crores of depositors “whose savings are held by these pillars of the financial system”.
“Normally a political party should not respond to a research report on an individual company or business group prepared by a hedge fund. But the forensic analysis done by Hindenburg Research of the Adani group sought a response from the Congress party He was the Chief Minister.
Adani Group has said that the allegations against it were “malicious, baseless, one-sided and made to ruin the public listing of its shares”.
“The allegations require serious investigation by those who are responsible for the stability and security of the Indian financial system, viz. the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI),” Mr Ramesh said.
“Allegations of financial impropriety would be bad enough, but what is worse is that the Modi government has exposed India’s financial system to systemic risks through generous investments in the Adani group by strategic state entities like LIC, SBI and other public sector entities. may have been exposed to. Banks,” he said.
The Congress leader said that 8% of LIC’s equity assets under management, amounting to Rs 74,000 crore, was invested in Adani group companies, while public sector banks lent twice as much to the Adani group. 40% lending is being done by the private bank, SBI.
“Indians are increasingly aware of how the rise of Modi’s cronies has exacerbated the problem of inequality, but need to understand how it is funded with their own hard-earned money,” Mr. Ramesh said.
Asked if there was any dealing between the Modi government and the Adani group, the Congress leader alleged, “The previous operators of Mumbai’s Chhatrapati Shivaji Maharaj International Airport, India’s second busiest airport, are perhaps the worst examples of crony capitalism.” In the Ego case, the raid was carried out by the Enforcement Directorate (ED) and the Central Board of Investigation (CBI) after Adani Group rejected an offer.
“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 after that,” Mr. Ramesh said.
Lok Sabha member Manish Tewari said on Twitter that if the Hindenburg report was even partially correct, “it merits both a joint parliamentary committee like the 1992 JPC and a Supreme Court-monitored inquiry to get to the bottom of the matter”. The budget session of Parliament begins on 31 January 2023.”
Congress Rajya Sabha member Randeep Surjewala tweeted, “#LIC’s exposure to Adani group is ₹77,000 cr. LIC has lost ₹23,500 cr today. Investment in Adani group ₹53,000 cr in value. Against ₹77,000 cr. LIC is the money of the people of India.In any other country, heads including FM would have rolled over.
Communist Party of India general secretary D. Raja said the policies adopted by the Narendra Modi government have resulted in corporate houses like the Adani group gaining control of ports, airports and other public sector undertakings. “Now, this report has exposed everything. Prime Minister Modi should explain to the nation and there should be a thorough investigation,” Mr. Raja told Hindu,