Adani Enterprise row: Oppn strategy explained in 10 points, will govt budge?
5 min read . Updated: 03 Feb 2023, 11:36 AM IST
Premium- Since Modi came to power, Adani has become the poster child for his administration’s use of private capital to boost infrastructure and domestic manufacturing
Amid the Adani-Hindenburg row, the opposition parties have come together to question the 'silence' of the Central government on the issue. Congress party has accused Prime Minister Narendra Modi of 'protecting' his 'friend'. Since Modi came to power, Adani has become the poster child for his administration’s use of private capital to boost infrastructure and domestic manufacturing. Now that the conglomerate’s ability to keep delivering is coming into question, the market crash has spilled into politics, with Modi’s rivals sensing weakness.
Here's what opposition parties think about the Adani-Central government ties:
CPI (M):
CPI (M) party in its mouthpiece, "People's Democracy" mentioned that, "Adani's story is incomplete without viewing the rise of India's richest man as an outcome of the patronage and protection offered by Narendra Modi. The nexus between Modi and Adani began in 2002 when Modi became the chief minister of Gujarat.
"Since then, the fortunes of Adani became intimately linked to the political trajectory of Narendra Modi, who eventually reached Delhi as the prime minister in May 2014," the editorial in "People's Democracy," said.
It added that much of the business group's acquisitions and assets have been facilitated by loans from nationalised banks and investments from institutions, such as the Life Insurance Corporation of India (LIC).
The editorial further said funds amounting to around ₹80,000 crore from the LIC have been invested in Adani Group companies and 40% of all loans taken by the business group from banks were through the State Bank of India.
"The crash in the share prices of the Adani Group companies is, therefore, a threat to the people's savings and public funds.
Congress:
The Congress party has demanded an impartial investigation under the supervision of the Supreme Court or a joint parliamentary committee to probe the charges raised in the Hindenburg report against the Adani Group.
The Congress has also decided to protest outside the offices of LIC and SBI in all districts across the country on February 6.
Leader of Opposition in Rajya Sabha Mallikarjun Kharge said on behalf of like-minded opposition parties, he demands either a JPC or an SC-monitored investigation in the manner in which government-owned companies "are forced to invest in firms that have been exposed by the Hindenburg report".
"The Modi government is protecting its best friend by repeatedly adjourning Parliament and scuttling the opposition's voice. We demand a JPC and a Supreme Court-monitored probe to investigate the entire matter and the government's involvement in this massive scam," Congress' KC Venugopal said on Twitter.
He claimed that the LIC has "invested a total of ₹36,474.78 crore" in Adani Group, whereas Indian banks together have "invested nearly ₹80,000 crore" in the same and they continue to do so even when there are allegations of stock manipulation, accounting fraud, and other malfeasance.
AICC head of the media and publicity department, Pawan Khera, said the Congress has raised three important demands from the Narendra Modi government.
"An impartial investigation under the Chief Justice of Supreme Court, with day-to-day reports, should be carried out, or a JPC should be formed to investigate the Hindenburg Research report in detail," he said at a press conference.
"Risky investments" by LIC, SBI, and other nationalised banks in Adani Group should be discussed in Parliament and appropriate steps are taken to protect the investors, he said.
Former Andhra Pradesh Chief Minister YSR Reddy shared a screenshot of fall in Adani Enterprises stock and tweeted, "The end is near to the duo?".
Adani Enterprises on Friday fell 25.36% in the morning traded at NSE.
What is Joint Parliamentary Committee (JPC)?
It is a special committee set up by the parliament, for the detailed scrutiny of a subject or Bill. The JPC comprises members from both the Houses of Parliament, both ruling and opposition parties. It is dissolved when the task is completed.
Trinamool Congress Party (TMC):
Trinamool Congress MP Santanu Sen hit out at the Chairman of the House and said that the repeated rejection of suspension of Business notices under Rule 267 is "against democracy".
"The way notices under Rule 267 are being rejected is against democracy. TMC demands a proper inquiry into the matter so that the truth can come to the fore," he said.
TMC MP Mahua Moitra also took a fresh dig at the Modi-led BJP government on Adani row. Moitra tweeted, "Greatest respect for ace lawyer Cyril Shroff but his daughter is married to Gautam Adani’s son. Shroff serves on SEBI’s Committee on Corporate Governance & Insider Trading. If at all Sebi India is examining the Adani issue, Shroff should recuse himself. Perceptions are Reality".
Moitra has reiterated her demand that Sebi should monitor Adani's stocks to protect the interest of lakhs of investors.
On Friday, S&P Dow Jones removed Adani Enterprises from the Dow Jones indices. Moitra questioned, " Why is the NSE India not reevaluating index membership of Adani stocks when international ones are?".
Aam Aadmi Party (AAP):
Aam Aadmi Party MP Sanjay Singh thrashed the Centre describing Gautam Adani as the "closest friend" of Prime Minister Narendra Modi.
"Why is the Modi government silent on such a huge scam? The government is silent because the man who is indulged in this scam is the closest friend of PM Modi. Adani opens fake companies in foreign countries, buys shares worth crores of rupees from his own company, and takes loans worth lakhs and crores from banks. All those who invested money in Life Insurance Corporation (LIC) and SBI for their needs are worried. This is the Maha ghotala (scam) in Amrit Kaal," he said.
Singh demanded the government hold a discussion on the issue in the House.
Adani Group stocks have taken a beating on the bourses after Hindenburg Research made a litany of allegations in its report, including fraudulent transactions and share price manipulation at the Gautam Adani-led group.
Adani Group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements. It called the Hindenburg report baseless and threatened to sue the short seller.
