SEBI's Adani clean chit deemed inadequate by Congress; they call for a thorough investigation into the 'Modani Scam'
The Securities and Exchange Board of India (SEBI) is currently investigating a series of suspicious transactions involving offshore dealings by close associates of billionaire Gautam Adani, Nasser Ali Shaban Ahli and Chang Chung-Ling. The investigation also includes 22 matters against the Adani Group, alleging insider trading in Adani Group companies and violations of public shareholding standards.
The investigation follows a damning report published by Hindenburg Research in January 2023, which alleged that Adicorp Enterprises Pvt Ltd, Milestone Tradelinks Pvt Ltd, and Rehvar Infrastructure Pvt Ltd were used as a conduit to transfer money from different Adani Group companies to fund Adani Power Ltd and Adani Enterprises Ltd.
However, SEBI has cleared Adani of insider trading and stock manipulation in two comprehensive orders. Yet, 22 issues remain under investigation. Jairam Ramesh, Congress general secretary in charge of communications, stated that the commercial partner in "Modani Enterprises" has received a "clean chit" from SEBI only in two of the 20 matters being investigated.
The allegations against the Adani Group also include bribery, forced asset sales, over-invoiced coal, and biased privatization of vital infrastructure such as ports and airports. The Congress has been calling for an investigation into these allegations, as well as into the import of "over-invoiced" coal by Ahli and Chang, which led to a significant rise in the cost of electricity from Gujarat's Adani power plants.
The Congress has also been pushing for a wider investigation into the "Modani scam" beyond the scope of SEBI's inquiries. More research into this matter is still necessary, according to Ramesh.
Meanwhile, the Adani Group has consistently refuted every accusation made against them. A Delhi Court has reserved its verdict on a gag order against journalist Paranjoy Guha Thakurta in the Adani case, which might be relevant for further investigations.
There are no verified public sources or credible reports confirming specific individuals involved in allegations against Gautam Adani related to bribery, corruption attempts for high solar power contracts in India, or violations involving overpriced coal imports causing increased electricity costs at Gujarat-Adani power plants.
SEBI was ordered by the Supreme Court to conclude the investigation within two months after the Hindenburg Report on March 2, 2023. The investigation's outcome will likely shed more light on the allegations against the Adani Group. The unanswered issues about the Congress's 100-question series "Hum Adani Ke Hain Kaun" (HAHK) also remain a topic of interest.
