Rahul Gandhi asks PM Modi to break silence, order probe against Adani

Ahead of the 18th G20 Summit in New Delhi on September 9 and 10, Congress MP Rahul Gandhi demanded that Prime Minister (PM) Narendra Modi break his silence over the Adani issue and allow a joint parliamentary committee (JPC) probe into the alleged financial and stock market irregularities of the corporate house to save the reputation of the country. Citing media reports about financial irregularities in the Adani Group, Gandhi made his demands at a media conference during the I.N.D.I.A bloc's third conclave in Mumbai on Thursday.

"The current flavour is G20 and it is about India's position in the world. It is important for India that there be a level playing field and transparency in our economic environment and businesses. This morning, two global financial newspapers have raised an important question. These are not any random newspapers. These newspapers affect investment in India and the perception of India in the rest of the world," he said.

Rahul Gandhi at a press conference during the I.N.D.I.A block's conclave in Mumbai. Pic/Pradeep Dhivar

He said the corporate house was very close to PM Modi and he has been asking about their rishta (relation). "I had said earlier that Gautam Adani accompanied the PM on foreign tours and after those visits had bagged several contracts. The country should know about it," he added.

Gandhi said he would continue to raise questions. "It is very important that the PM of India clears his name and categorically explains what is going on. At the very least, a JPC should be allowed and a thorough investigation should take place. I don't understand why the PM is not forcing an investigation. Why is he quiet and why are people who are responsible not put behind bars? This raises very serious questions against the PM just before G20 leaders come here," he said.

‘There was no probe'

Gandhi termed a probe conducted by the Securities and Exchange Board of India (SEBI) against the Adani Group as hogwash. He said it was proved beyond a point that over a billion dollars were sent abroad from India, circulated in different places and brought back to buy new assets, and that the share prices were inflated.

"It is amazing that the gentleman who has done the investigation is today the director of the Adani-owned NDTV. What does that tell you about the nature of the investigation that the gentleman did? It is pretty clear that no investigation took place and the only reason this happened is because the PM didn't want an investigation to take place. Adani cannot stop an investigation, the PM can. This is an issue that affects India's reputation, especially because now there is the G20 taking place and India's and the PM's reputation are on the line," said Gandhi, adding, "There was an investigation, evidence was given to SEBI and SEBI gave a clean chit to Gautam Adani. So, it is clear that there is something very wrong here."

About the Special Session of Parliament in September that the Modi government has announced, Gandhi said, "I think maybe it is an indicator of a little panic. The same type of panic that happened when I spoke in Parliament House, panic that suddenly made them revoke my Parliament membership. So, I think it is panic because these matters are very close to the PM. Whenever you touch the Adani matter, the PM gets uncomfortable and nervous."

Gandhi said there was no level playing field in the country. "Adani can buy anything. He has Dharavi project, airports, cement plants, etc."

‘Whose money is it?'

He questioned the ownership of the money that was allegedly sent abroad and demanded action against the masterminds, especially a Chinese national. "The first question is - whose money is this? Is it Adani's or someone else's? The mastermind behind this is a gentleman called Vinod Adani who is the brother of Gautam Adani. There are two other people who are involved in this round-tripping of money. One is a gentleman called Nasir Ali Shaban Ahli and another is a Chinese gentleman called Chang Chung Ling. So, the second question arises - why are these two foreign nationals being allowed to play with the valuation of a company that controls almost all Indian infrastructure?"

"It's a matter of national security. What role does a Chinese national have?" he said and asked why the Enforcement Directorate and Central Bureau of Investigation were not probing Adani Group. Asked about a difference of opinion among the I.N.D.I.A bloc's constituents over a JPC probe, Gandhi said all were on the same page. "JPC should be called in. It's the duty of the PM."

Adani rejects new claims

A spokesperson for the Adani Group rejected media reports about stock manipulation, terming them an attempt to revive the Hindenburg report. The spokesperson said, "We categorically reject these recycled allegations. These news reports appear to be another bid by Soros-funded interests supported by a section of the foreign media to revive the meritless Hindenburg report. In fact, this was anticipated, as was reported by the media last week." The spokesperson added, "These claims are based on closed cases from a decade ago when the Directorate of Revenue Intelligence (DRI) probed allegations of over-invoicing, transfer of funds abroad, related party transactions and investments through FPIs (foreign portfolio investors). An independent adjudicating authority and an appellate tribunal had both confirmed that there was no over-valuation and that the transactions were in accordance with applicable law. The matter attained finality in March 2023 when the Supreme Court ruled in our favour. Clearly, since there was no over-valuation, there is no relevance or foundation for these allegations on transfer of funds."

"The FPIs are already part of the investigation by the Securities and Exchange Board of India (SEBI). As per the Expert Committee appointed by the Supreme Court, there is no evidence of breaching the Minimum Public Shareholding (MPS) requirements or manipulation of stock prices.

It is unfortunate that these publications, which sent us queries, chose not to carry our response in full," the spokesperson said. "These attempts are aimed at, inter alia, generating profits by driving down our stock prices and these short sellers are under investigation by various authorities," the spokesperson added.

Sept 9
Day G20 summit commences in New Delhi