Congress Calls for Unbiased Adani Probe Post-Hindenburg Allegations

The Congress party has urged the Indian government to address conflicts of interest in the Securities and Exchange Board of India's (SEBI) investigation into the Adani Group. This call follows allegations from Hindenburg Research against SEBI chairperson Madhabi Buch and her husband. The opposition party insists that a Joint Parliamentary Committee (JPC) should be established to thoroughly investigate the matter.

Hindenburg Research recently accused Madhabi Buch and her husband of having stakes in offshore funds linked to the Adani Group's alleged financial misconduct. In a blog post, Hindenburg criticised SEBI for its lack of action since their initial report on Adani 18 months ago. They highlighted SEBI's failure to investigate Adani's undisclosed offshore entities.

Allegations Against SEBI Chairperson

Congress general secretary Jairam Ramesh commented on SEBI's reluctance to probe the Adani case, noting that even the Supreme Court's Expert Committee had observed this hesitation. He mentioned that SEBI had diluted reporting requirements in 2018 and removed them entirely in 2019, which hindered their ability to investigate effectively. Ramesh quoted the Expert Committee, stating, "It is this dichotomy that has led to SEBI drawing a blank worldwide."

Ramesh also pointed out that under public pressure, SEBI reintroduced stricter reporting rules on 28 June 2023. Despite this, investigations into 13 suspicious transactions have not yielded results. He expressed shock over Buch's financial involvement in the same offshore funds used by Vinod Adani and his associates for alleged over-invoicing of power equipment.

Congress Demands Immediate Action

The Congress leader emphasised that Buch's financial ties raise questions about her meetings with Gautam Adani shortly after she became SEBI chairperson. He stated, "The government must act immediately to eliminate all conflicts of interest in the SEBI investigation of Adani." Ramesh reiterated the need for a JPC to investigate the full scope of the alleged scam.

In January last year, Hindenburg Research accused the Adani Group of manipulating stock prices and inflating revenue through a network of companies in tax havens. Although Adani Group denied these allegations, the report caused a significant drop in their market value, wiping out over USD 150 billion at its lowest point. Most of these losses have since been recovered.

Following the Hindenburg report, the Supreme Court directed SEBI to complete its investigation and formed an expert panel to examine regulatory lapses. The panel did not find any adverse evidence against Adani, and the Supreme Court stated that no other probe was necessary beyond SEBI's ongoing investigation.

SEBI's Ongoing Investigation

SEBI informed a Supreme Court-appointed panel last year that it was investigating 13 opaque offshore entities holding between 14% and 20% across five publicly traded stocks of the conglomerate. However, it remains unclear if these investigations have been completed.

Hindenburg's recent allegations claim that Madhabi Buch and her husband had hidden stakes in offshore funds used by Vinod Adani. These funds were part of a complex structure involving Bermuda and Mauritius-based entities.

No immediate comments were available from SEBI regarding these allegations. Additionally, SEBI's X account was found locked, with posts inaccessible to non-followers.

Earlier, Jairam Ramesh questioned why Parliament was adjourned two days ahead of schedule. He suggested it might be related to these recent revelations. "Parliament was notified to sit till August 12th evening. Suddenly it got adjourned sine die on August 9th afternoon," he wrote on X.

The Congress party continues to press for transparency and accountability in SEBI's investigation into the Adani Group. They believe that only a JPC can resolve the apparent complicity of high-ranking officials involved in this case.