The Hindenburg-Adani row has turned into a major political controversy with the Congress and other opposition parties making allegations of favouritism and crony capitalism against the government. They raised the issue during the budget session of parliament demanding a joint parliamentary committee probe. The opposition parties have also targeted Prime Minister Narendra Modi on the issue. After Rahul flashed pictures of Modi with Adani, the BJP hit back with images of the industrialist with Rahul’s brother-in-law Robert Vadra and also with Congress chief ministers. The BJP said that Rahul’s allegations that Modi helped Adani’s business to flourish was false and challenged him to prove his claims against the prime minister in Parliament.
People were expecting PM Modi to say something on Hindenburg-Adani row in parliament but he gave Nehru a ride to the house and remained mute on this core controversy surrounding Adani. The opposition was constantly targeting the BJP-led government over the Adani controversy, people wanted to know why BJP is silent on this issue. On social media a successful narrative was created that Adani and Modi are old time friends and that is the reason BJP is siding him. To address the issues finally Union Home Minister Amit Shah gave an interview to media and said that it will not be appropriate for him to comment as the Supreme Court has taken cognizance of the matter but there is nothing “for the BJP to hide or be afraid of”.
If BJP discloses all the sources of their political funding, there will be really nothing to hide. I wish we could have an independent wing of CBI/ ED working under a Lokpal with a constitution section to let the truth emerge. Congress or any opposition party don’t have an investigation resource to bring out the evidence. It is an unfair and uneven battle to nail down these despots. India’s Adani Group made headlines last month after it was accused by US-based short-seller Hindenburg Research of stock manipulation, unsustainable debt and use of tax havens.
The ports-to-energy conglomerate, which operates seven publicly traded companies, had a combined valuation of $220 billion. Because of the accusations, Adani’s shares have been in free fall, with the conglomerate’s cumulative market value loss reaching a whopping $133 billion. The Adani Group has denied the allegations, calling them “malicious” and “baseless” and says its plans have not changed. But investors are clearly still nervous.
After Hindenburg Research accused the group of “brazen” stock manipulation and accounting fraud, its valuations have nearly halved. The group’s founder Gautam Adani has seen billions wiped off his personal wealth and has dropped to the 17th spot on the list of the world’s top 20 richest people.Analysts are watching to see if there will be a regulatory inquiry into the group’s corporate governance. The issue has also set off a political row over Adani’s perceived closeness to Prime Minister Narendra Modi, which both deny.
TotalEnergies has put a hold on a multi-billion dollar contract to extend its partnership with Adani for the production of green hydrogen; the French oil major announced .The embattled group was also forced to call off its flagship Adani Enterprises’ $2.45 billion FPO due to the market rout. Global rating agencies have mixed views on the Adani situation and the direct ramifications for the Adani Group. Banks have a loan exposure of around Rs80,000 crore to the Adani Group, of which the SBI has lent around Rs27,000 crore. However, SBI chairman Dinesh Kumar Khara said the bank’s loans to the group were 0.88 percent of its books and that it does not envisage any challenge. Similarly, the LIC’s investment of around Rs36,000 crore in the Adani Group is 0.97 per cent of its assets under management at book value. Also, the group has offered to return its debt early to restore market sentiment.
They have sought questions over the investment of LIC and some public sector banks in the Adani group. The government has rejected the allegations with PSUs and regulatory bodies also issuing statements about following the norms and acting to their mandates. The Centre informed the Supreme Court that SEBI had agreed to constitute a committee to protect investor interests following Hindenburg’s report on Adani Group. Solicitor General Tushar Mehta informed a bench of Chief Justice DY Chandrachud that SEBI is completely equipped to deal with the situation that took place due to a recent report by Hindenburg Research.Mehta also said that the government has no objection to appointing a committee to suggest how to ensure investors are protected in the future. However, he said that the remit of the committee is important since it has an effect internationally and that the government will provide names in a sealed cover.