Trinamool Congress MP Mahua Moitra writes to SEBI requesting probe into Adani Group entities

Kolkata: In the wake of allegations of stock manipulation and accounting fraud against the Adani Group, Trinamool Congress (TMC) MP Mahua Moitra wrote to the Securities and Exchange Board of India (SEBI) requesting them to launch an investigation into Adani Group entities and entities related to it.

The MP, in her letter, addressed to Madhabi Buch, Chairperson SEBI, wrote that she was “shocked” after reading the reply by the Adani Group to the report compiled by Hindenberg Research under the title “Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History”.

The MP said the Adani Group has termed the report “a malicious combination of selective misinformation and stale, baseless and discredited allegations that have been tested and rejected by India’s highest courts.”

Moitra, however, highlighted that despite the many statements and counter statements over this issue, “the reality is that we still do not know the identity and the ultimate beneficial owners of these stocks and the history of this shareholding”.

Moitra informed the SEBI chairperson that previously she raised questions in the Parliament on whether “the FPIs and/or Adani entities are under investigation by SEBI, IT, ED, DRI, MCA for suspicious transactions...? She informed that MOS Finance had then replied that SEBI did investigate some Adani Group companies concerning compliance with SEBI Regulations. Further, it was said that the Directorate of Revenue Intelligence (DRI) was investigating certain entities belonging to the Adani Group of Companies under laws administered by it.

Moitra said that it appears from the statement by the Adani Group CFO that SEBI completed its probe and that the Adani Group won the matter in court with all charges dismissed or SEBI discharged them. She wrote: “I would like to understand when was the investigation on the matter completed? What were the findings? What action was taken? What went to court? When did it go?”

She added: “If the investigation is not complete, why is it taking so long? When will it be completed? Is this in the best interest of the investors, especially when the Group is doing a 20,000 crore FPO and seeking further retail investor’s monies.? Why was this approval given to Adani Enterprises without completing this investigation?”

The Trinamul MP emphasised: “…It would be expedient to take immediate corrective clarification and penal action against Adani group for their false statement to the market participants that these allegations have been “tested and rejected.”

She opined that “this is now affecting the stability of our markets, our reputation, our financial institutions and most importantly, our retail investors. I hope this is dealt with expeditiously”.