Jairam Ramesh makes compelling case for JPC inquiry into ‘Adani scam’

The Hindenburg allegations against the Adani Group and the SEBI chief Madhabi Puri Buch are limited to the capital markets - stock manipulation, accounting fraud, and conflict of interest in regulatory agencies, pointed out Jairam Ramesh on Friday (16 August) in a post on X, explaining why a Joint Parliamentary Committee must inquire into the ‘Adani scam’.

“Hindenburg is only the tip of the iceberg. Only a JPC can investigate and unravel the true and full extent of this Modani mega-scam,” he posted.

The JPC would look into the misuse of central government agencies like the CBI, ED and Income Tax Department to help the Adani group secure monopolies in ports, cement and other critical sectors, he pointed out.

The Congress had earlier raised the issue of CBI raids and inquiry into NDTV, ED’s case against GVK Mumbai airport and investigations and raids by the Income Tax department at offices of Quintillion and Nellore Krishnapatnam port.

In each of these cases the raids and inquiries were followed by the Adani Group acquiring the control of these companies or acquiring the lion’s share of the stakes. The Adani Group, for example, acquired 98 per cent stake in the Mumbai airport following the ED case against GVK. The JPC, the Congress MP indicated, should look into these suspicious interventions and probe possible misuse of the agencies. 

Public sector banks are known to have been extraordinarily generous in favouring the Adani Group. “The favouritism shown by government banks, particularly the SBI, in providing credit to key projects, including the Adani copper plant at Mundra, the airport in Navi Mumbai, and the UP Expressway Project” also needs to be inquired and this is neither related to the Hindenburg reports or with SEBI (Securities Exchange Board of India).  

Neighbouring countries, notably Sri Lanka and Bangladesh, it was alleged, were arm-twisted by the Indian government to favour the Adani Group, thereby ‘subordinating India’s foreign policy interests to the needs of Adani Enterprises, at the cost of India’s standing in the neighbourhood”, the post mentions.

Earlier this month following developments in Bangladesh, a power ministry office memorandum was issued to permit an Adani firm to sell the electricity generated in Jharkhand to sell to buyers in India. The Group had claimed various concessions for pledging to export the entire electricity generated to Bangladesh earlier. Public opinion in Bangladesh had turned against Sheikh Hasina for the concessions granted to the Adani Group.

“The non-biological PM moves with lightning speed when interests of his favourite ‘tempowallahs’ are involved. Adani imports coal from Australia to generate power in Jharkhand and supply it to Bangladesh. It is the only company allowed to do so through a power purchase agreement which has been very controversial,” pointed out the Congress leader.

The post on X also alleged the following irregularities which merit an investigation by a JPC, he asserted.

* Handing over of India's strategic relationship with Israel to a single company, Adani

* Coal and power equipment over-invoicing which facilitated money-laundering and abnormal profits, besides raising the common citizen’s electricity bills

* Unregulated extension of leases over publicly-owned assets to Adani Group at throwaway prices.

The Congress, which had last year raised over 100 questions questioning the government’s special treatment to the Adani Group, after short seller Hindenburg Research accused the Group of committing the ‘largest corporate fraud’, has stepped up pressure on the government to constitute an all-party JPC to inquire into the meteoric rise in the Group’s fortune since 2014 and allegations of favouritism.

Earlier this month the Congress leader had cited the example of the Gujarat Government rushing to extend the 30-year concession period of the Adani group over Mundra, Hazira and Dahej ports to 75 years. The ports which were to be handed over to the government after 30 years would now be under the control of the Adani group for 75 years.

“There are at least two serious consequences of this daylight robbery - Adani Ports will secure a monopoly on Gujarat’s port sector harming market competition, and driving up prices for the common man; besides, Adani Ports will see its valuation rise and its borrowing costs fall," Jairam Ramesh had pointed out. The Gujarat Government would also lose revenue.

“Modi Hai toh Adani ke liye sab kuch mumkin Hai! This is why a Joint Parliamentary Committee (JPC) investigation is essential,” he maintained.