Home / News / India /  Hindenburg-Adani row: CPI(M) demands high level probe

Among the list of opposition parties, CPI(M) has joined the list demanding a high-level enquiry into charges of alleged irregularities made by a US-based investment research firm against the Adani Group.

CPI(M) general secretary Sitaram Yechury has also asked that Supreme Court should monitor the report.

At a press conference in Kolkata, Yechury said, "The CPI(M) demands that the Centre constitute a high-level enquiry team, involving all concerned ministries. The probe should be monitored by the Supreme Court on a day-to-day basis till the enquiry is completed. The interest of the country has to be protected".

Meanwhile, on Monday, most of the Adani Group's companies extended a $51 billion stock selloff. Adani Green Energy Ltd., Adani Total Gas Ltd, and Adani Transmission Ltd. each fell by more than 10% as trading started in Mumbai, while Gautam Adani’s flagship firm Adani Enterprises Ltd. defied the trend by rising 6.3%.

Yesterday, Adani Group issued a detailed riposte to a Hindenburg Research report, saying it complies with all local laws and had made the necessary regulatory disclosures.

Adani group published a 413-page rebuttal after allegations of fraud by short-seller Hindenburg Research erased $51 billion of his flagship firm’s market value.

Some 65 of the 88 questions have been addressed in Adani’s public disclosures and the conduct of the American short seller “is nothing short of a calculated securities fraud under applicable law," Adani Group said in a statement Sunday. It reiterated it will “exercise our rights to pursue remedies to safeguard our stakeholders before all appropriate authorities."

The lengthy response comes ahead of the final few days of a $2.5 billion share sale by Adani Enterprises Ltd., which received overall subscriptions of 1% on Friday.

US-based Hindenburg on 24 January published a 100-page report alleging that its two-year investigation found the Adani Group had “engaged in a brazen stock manipulation and accounting fraud scheme." It also called out the conglomerate’s "substantial debt".

(With agencies input)

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