“JPC On Modani As Soon As INDIA Government Takes Office”: Congress On SEBI Show-Cause Notices To 6 Adani Firms

Six firms under the Adani Group’s umbrella have found themselves under scrutiny by the Securities and Exchange Board of India (SEBI) for alleged breaches in related party transactions and non-compliance with listing regulations. Adani Enterprises, the flagship entity of Gautam Adani‘s conglomerate, disclosed the receipt of two show-cause notices during the quarter ending on March 31. Other notable entities including Adani Ports & Special Economic Zone, Adani Power, Adani Energy Solutions, Adani Wilmar, and Adani Total Gas have also reported SEBI’s inquiries in their regulatory filings.

While the firms have expressed confidence in minimal impact from the regulatory notices, auditors, with the exception of those of Adani Wilmar and Adani Total Gas, have adopted a cautious stance, issuing qualified opinions. This caution stems from the potential implications of SEBI’s investigations on future financial statements.

The auditors of Adani Enterprises, in their statement, noted, “…on account of pending adjudications/outcome of the investigations by the Securities and Exchange Board of India and based on our review of related documents, we are unable to comment on the possible adjustments and/or disclosures, if any, that may be required to be made in the accompanying Statement in respect of this matter.”

Jairam Ramesh, Congress’s general secretary in charge of communications, pointed out the gravity of the situation. Ramesh highlighted that these notices are a culmination of SEBI’s investigations into various questionable transactions, shedding light on the ongoing scrutiny surrounding the Adani Group’s operations.

Ramesh also emphasized broader implications, alleging misuse of agencies and diplomatic resources in favor of Adani Group interests. He called for a Joint Parliamentary Committee (JPC) investigation on what he termed “Modani,” indicating a fusion of Modi government and Adani interests, to unearth alleged wrongdoings.

“The Adani Mega Scam has many other aspects that bear investigation, whether it is the misuse of agencies like the ED, CBI and Income Tax to force firms to divest assets in critical infrastructure sectors to the PM’s close friends, or the use of our diplomatic resources to funnel contracts to Adani in Bangladesh, Sri Lanka and elsewhere. These will require a JPC on Modani that will be set up as soon as the INDIA government takes office in June 2024,” Ramesh said in a statement.

He also said SEBI’s actions once again illustrate the hollowness of the false claim by the Adani Group, the BJP and their supporters that the Supreme Court Expert Committee issued a “clean chit”. “Nothing could be further from the truth. We now know that close Adani associates Chang Chung-Ling and Nasser Ali Shaban Ahli used benami funds to amass large stakes in the Adani Group. At the peak of their investment, these individuals controlled between 8 and 14 percent of shares in Adani Power, Adani Enterprises, Adani Ports and Adani Transmissions. Rs 20,000 crore of benami funds from alleged round-tripping and over-invoicing have flowed into Adani Group companies as a result,” he added.