The Adani Group, which has refuted the allegations in the Hindenburg report, has been accused of financial irregularities, and the Congress has urged that the Securities and Exchange Board of India (Sebi) and Reserve Bank of India (RBI) look into these allegations.
The party claimed in a statement that a party shouldn’t respond to a research report, but the Hindenburg Research examination of the Adani Group calls for a response.
“This is due to the Adani Group’s unique status as a conglomerate. Since his term as chief minister, Prime Minister Narendra Modi has been closely associated with it “The Congress stated while urging an investigation.
“We are aware of the intimate ties that exist between the Adani Group and the current administration. However, it is the Congress party’s duty as a responsible opposition party to call on Sebi and RBI to uphold their stewardship of the financial system and to look into these claims in the interest of the general public “Jairam Ramesh, the leader of the Congress, made a statement.
Furthermore, he continued, the Adani Group’s high exposure to financial institutions like the State Bank of India (SBI) and the Life Insurance Company of India (LIC) has implications for financial stability and for the hundreds of millions of Indians whose savings are managed by these cornerstones of the financial system.
The Adani Group is accused of “accounting fraud” and “brazen stock manipulation” by the Hindenburg investigation through “a massive labyrinth of offshore shell corporations.”
The conglomerate disputed the allegation made by Hindenburg Research that Adani Group was “involved in flagrant stock manipulation and accounting fraud,” calling it malicious, unfounded, biassed, and made with the malafide objective of devaluing its stock.
Adani Group expressed dismay at the publication of the study without making any attempt to get in touch with it to obtain the factual matrix. The ports-to-energy conglomerate issued a statement saying, “The story is a nasty blend of selective falsehoods and stale, unsubstantiated, and discredited charges that have been tried and dismissed by India’s highest courts.”
The Modi government may have put India’s financial system at risk through liberal investments made by strategic state entities like LIC, SBI, and other public sector banks in the Adani Group, the Congress claimed. “The allegations of financial malfeasance would be bad enough, but what is worse is that the Modi government may have exposed India’s financial system to systemic risks,” it said.