Parliament witnessed unprecedented exchange of harsh and critical comments between the treasury and opposition benches after Congress leader Rahul Gandhi sought to link PM Modi’s relationship with Adani Group to the company’s phenomenal growth, writes Mudit Mathur
After three consecutive days of complete logjam, the budget session of Parliament of India witnessed unprecedented exchange of harsh and critical comments between the treasury and opposition benches over the questions raised with regard to proximity of Prime Minister Narendra Modi behind the meteoric rise of Adani Group conglomerate after 2014. Unruly scenes marred when the opposition demanded setting up a joint parliamentary committee (JPC) or Supreme Court-led probe into the Hindenburg Research report – that alleges fraud and irregularities in the business of the Adani Group companies.
Prime Minister Narendra Modi did not reply to the questions raised by rejuvenated Congress leader Rahul Gandhi, after his Bharat Jodo Yatra from Kanyakumari to Kashmir. Taking the pot shots at Congress leader Rahul Gandhi, Modi said, “I have the protective shield of the trust of 140 crore countrymen and you cannot pierce this protective shield with your lies.”
While participating in the debate over motion of thanks on presidential address, Rahul Gandhi launched a frontal attack on PM Modi linking his inextricable relationship with Adani Group to the company’s phenomenal growth. Rahul made scathing remarks against Modi as he posed tough questions after domestic investors suffered huge losses owing to the report of Hindenburg Research.
Hindenburg report accused Adani conglomerate of stock manipulation, accounting fraud and using offshore shell entities in tax havens allegedly routing his own money through machinations of his brother. It also accused Adani of pulling off the “largest scam in corporate history”.
Though Adani hit back saying the research report is “malicious”, “baseless” and a “calculated attack on India” threatening to take a legal action against the short seller, Hindenburg stuck to its guns saying that it’ll welcome any action and will demand documents in the legal process. The Financial Times reported that Adani Group has hired New York-based law firm Wachtell, Lipton, Rosen & Katz to challenge the allegations raised by short-seller Hindenburg Research against it, as the shares of the group’s listed firms continued to take a beating on the Indian stock market on Friday(10th February).
A ‘Forbes’ analysis revealed that three investment funds with ties to the Adani Group committed to buying up shares as investors in the Adani Enterprises’ share sale. The three firms are: Mauritius-based funds, Ayushmat Ltd and Elm Park Fund, and India-based Aviator Global Investment Fund. These three firms together agreed to buy 9.24% of all shares available to anchor investors. Anchor investors are allotted shares a day before the share sale opens and that builds the tempo of investment among the common investors.
