Hyderabad: Congress leader Jairam Ramesh on Monday launched a scathing attack on the Centre over the latest claims by Hindenburg Research saying that no institution is sacrosanct in 'Amrit Kaal'.
Hindenburg Research, an investment research firm that uses activist short-selling to expose corporate fraud and malfeasance, alleged on Saturday that SEBI chairperson Madhabi Puri Buch and her husband had undisclosed investments in obscure offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani -- the elder brother of group chairman Gautam Adani -- to round-trip funds and inflate stock prices.
Here is the statement by Shri @Jairam_Ramesh, MP and General Secretary (Communications), AICC, dated August 12, 2024, in response to SEBI's statement of August 11, 2024. pic.twitter.com/Tsb8qdiVHk
— Congress (@INCIndia) August 12, 2024
In an elaborate statement posted on his X handle, Ramesh said, "In its August 11, 2024, statement on the on-going investigations into certain financial transactions of the Adani Group, the Securities and Exchange Board of India (SEBI) has sought to project an image of hyperactivity, stating that it has issued 100 summons, issued 1,100 letters and emails, and examined 300 documents containing 12,000 pages. This must have been very exhausting, but it diverts attention from the core issues involved. Actions matter, not activities."
Ramesh, a member of the Rajya Sabha, also demanded that the Centre should form a Joint Parliamentary Committee (JPC) to probe the issue.
"On February 14, 2023, I had written to the SEBI Chairperson urging SEBI to ‘play its role as the steward of India's financial markets on behalf of the crores of Indians who have faith in the fairness of India's financial markets.' I never received a reply. On March 3, 2023, the Supreme Court directed SEBI to "expeditiously conclude the investigation" into allegations of stock manipulation and accounting fraud against the Adani Group within two months. Now, eighteen months later, SEBI has revealed that a critical investigation, likely regarding whether Adani violated Rule 19A relating to minimum public shareholding, remains incomplete.
"The fact is that the SEBI's seeming inability to close two of its 24 investigations delayed the publication of its findings for over a year. This delay conveniently allowed the Prime Minister to navigate an entire general election without addressing his role in facilitating his close friend's illicit activities," added Ramesh.
According to Ramesh, a former Union Minister, SEBI is now under scrutiny. "Despite the Adani Group's claims of receiving a 'clean chit', SEBI has reportedly issued show-cause notices to several Adani companies concerning these allegations. However, the slow pace of these investigations, especially compared to the swift 'justice' that the Prime Minister's investigative agencies usually deliver to opposition leaders, remains inexplicable. Moreover, recent revelations raise disturbing questions about SEBI's integrity and conduct in investigating the Adani MegaScam," added Ramesh.
"SEBI, long considered a trustworthy global financial market regulator, is now under scrutiny. It is shocking to discover that SEBI Chairperson and her husband invested in the same opaque Bermuda- and Mauritius-based offshore funds where Vinod Adani and his close associates, Chang Chung-Ling and Nasser Ali Shaban Ahli, also invested. These funds were managed by Anil Ahuja, a close friend of the Buchs and an independent director in Adani Enterprises until May 31, 2017, a period that overlapped with the SEBI Chairperson's earlier tenure as a Whole-Time Member of SEBI," said Ramesh.
"The illusion that the SEBI Chairperson and her husband had separated their finances has been shattered by the revelation that after joining SEBI, she transacted in the fund from her personal email account on February 25, 2018. Ironically, these funds are part of the same vehicles (Global Opportunities Fund and Global Dynamic Opportunities Fund) that Chang and Ahli reportedly used to bypass Rule 19A, the very violation that SEBI is currently investigating. While 360 ONE, the fund manager, claimed that the IPE Plus 1 Fund made no investments in the Adani Group, it remains silent on whether Vinod Adani, Chang, or Ahli were investors in that fund alongside the Buchs. It also fails to clarify the connections between the Global Opportunities Fund, the Global Dynamic Opportunities Fund, and the IPE Plus 1 Fund," he added.
Ramesh also sought the resignation of the SEBI chief.
"Clearly, no institution is sacrosanct in Amrit Kaal. Did the SEBI Chairperson recuse herself from the Adani investigations? Do these conflicts of interest explain the prolonged investigation, a delay that has benefited both Adani and the Prime Minister while damaging SEBI's reputation? How can a match proceed if the umpire herself is compromised? The Supreme Court, empowered by the Constitution, must transfer the investigation to the CBI or a Special Investigation Team (SIT) given the likelihood of SEBI's compromise. At a minimum, the SEBI Chairperson must resign to restore SEBI's integrity," added Ramesh.
"However, the Adani MegaScam extends beyond the 24 matters under SEBI's investigation. It encompasses the source of the Rs 20,000 crore benami funds invested in the Adani Group, the over-invoicing of thousands of crores in coal and power equipment, and the laundering of those proceeds. Additionally, it involves the granting of monopolies to the Adani Group in critical infrastructure sectors, and the manipulation of Indian foreign policy to secure Adani assets in neighbouring countries like Sri Lanka and Bangladesh which are proving to be highly controversial. The path forward is to immediately convene a Joint Parliamentary Committee (JPC) to investigate the full extent of the Modani MegaScam involving the self-anointed non-biological PM and a perfectly biological businessman," said Ramesh.
