Congress Demands JPC To Probe Hindenburg Allegations On Sebi Chief, Calls It 'Adani Mega Scam'

In the ongoing Hindenburg vs Adani saga, Congress party has intensified its demands for the Centre to address potential conflicts of interest in SEBI's investigation of the Adani Group.

The controversy stems from explosive allegations made by the American short-seller Hindenburg Research against SEBI's chairperson, Madhabi Puri Buch.

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The firm claimed that Buch and her husband, Dhaval Buch, were involved in obscure offshore funds linked to the Adani money siphoning scandal.

Citing an IIFL document, Hindenburg alleged that the couple's net worth is around $10 million, supposedly derived from their salaries.

In response to these serious allegations, Congress leader and Rajya Sabha member Jairam Ramesh slammed SEBI's effectiveness in probing the Adani Group.

Quoting the expert committee, he remarked, "This has tied its hands to the extent that the securities market regulator suspects wrongdoing but also finds compliance with various stipulations in attendant regulations... It is this dichotomy that has led to SEBI drawing a blank worldwide."

Ramesh further called for the establishment of a Joint Parliamentary Committee (JPC) to thoroughly investigate what he termed the "Adani mega scam."

He said, "The government must act immediately to eliminate all conflicts of interest in the SEBI investigation of Adani. The fact is that the seeming complicity of the highest officials of the land can only be resolved by setting up a JPC to investigate the full scope of the Adani mega scam."

These allegations are particularly crucial in light of Hindenburg Research's earlier accusations against the Adani Group in January of last year, where the firm described the conglomerate's activities as "the largest con in corporate history."

They accused Adani of using a network of offshore companies to artificially inflate revenue and manipulate stock prices, despite heavy debt.

While Adani denied all allegations, the company saw a sharp decline in its market value, losing nearly $150 billion. However, in recent months, the conglomerate has managed to recover a huge portion of its lost wealth.

(With PTI inputs)