Only JPC probe will reveal 'full truth of the Modani scam', says Congress

The Congress on Thursday said only a Joint Parliamentary Committee probe into the Adani issue will reveal "the full truth of the Modani scam".

Senior leader Jairam Ramesh, in a tweet, cited a news report that has alleged a "cover up".

The Congress has been alleging that the money of LIC policyholders has been invested in the Adani Group. It has also claimed that LIC share prices have declined drastically since the Hindenburg Research report, which alleged stock price manipulation by the Adani Group, came out.

The Adani Group has denied the allegations.

Sharing the link to a news report on Twitter, Ramesh said it is an "expose of the anatomy of a Modani cover-up".

Citing the report, he said, "Hire a tiny accounting firm to audit gigantic companies. Get auditors to make identical 'qualified opinions', the minimum needed to comply with the law, without saying why or how it affects investors.

"Claim an 'independent review' has been done by an unnamed law firm but without disclosing any details. Avoid a forensic audit at all costs that could expose what actually happened. No one is any wiser as to how you used related-party transactions to launder money and inflate earnings." "This is why we need a JPC. Everything will be investigated, the full truth of the Modani scam will be revealed," Ramesh added.

The Congress has been demanding a Joint Parliamentary Committee (JPC) probe into the Adani issue and even stalled proceedings in both Houses of Parliament during the Budget Session.

On Wednesday, Ramesh had expressed concern over the 35 per cent decline in the market capitalisation of LIC and blamed "Modani" for the steep decline.

"Exactly a year ago today, LIC was listed in the stock market. Its market capitalisation then stood at Rs 5.48 lakh crore. Today, this is down to Rs 3.59 lakh crore -- a fall of a whopping 35 per cent," the AICC general secretary said on Twitter.

"There is only one reason for this steep fall -- Modani," he added.

The senior Congress leader further alleged, "In the process, lakhs and lakhs of policyholders have taken a serious hit."