New Delhi: The Congress on Friday claimed that the show cause notices from the Securities and Exchange Board of India to seven of the 10 listed firms of the Adani Group illustrate the “hollowness of the false claim” by the conglomerate and the BJP that the Supreme Court expert committee issued a “clean chit” to the group.
Seven of the 10 listed companies of the Adani Group have received show cause notices from the Securities and Exchange Board of India (SEBI) for alleged violation of related-party transactions and non-compliance with listing regulations, the companies said in their regulatory filings to the stock exchanges.
While the flagship Adani Enterprises, renewable energy company Adani Green Energy and city gas distributor Adani Total Gas said SEBI sent notices to their parent or holding company controlled by the conglomerate’s Chairman Gautam Adani, ports company Adani Ports & Special Economic Zone, Adani Power, electricity transmission company Adani Energy Solutions, and commodities company Adani Wilmar said they have received SEBI notices.
Congress General Secretary Jairam Ramesh said in a statement, “After having dragged its feet for many years and being forced into action by the Supreme Court, SEBI is reported to have issued show cause notices to several Adani Group companies regarding the violation of rules concerning related-party transactions, non-compliance of listing rules and the validity of auditor certificates.”
“Recall that these are the very companies whose auditors have issued ‘qualified opinions’ on several shady transactions. Adani Ports’ auditor Deloitte Haskins and Sells issued a qualified opinion on the company’s 2022-23 financials in May 2023 concerning, specifically on several transactions flagged by Hindenburg Research, and then resigned as the firm’s auditor in August 2023,” he said.
Ramesh pointed out SEBI had told the Supreme Court’s expert committee on August 25, 2023, that it was investigating 13 suspicious transactions.
These investigations have culminated in the damning show cause notices that are a first step towards legal action, he claimed.
“SEBI’s actions once again illustrate the hollowness of the false claim by the Adani Group, the BJP and their supporters that the Supreme Court expert committee issued a ‘clean chit’. Nothing could be further from the truth,” Ramesh claimed.
“The Adani MegaScam has many other aspects that bear investigation, whether it is the misuse of agencies like the ED (Enforcement Directorate), CBI (Central Bureau of Investigation) and Income Tax to force firms to divest assets in critical infrastructure sectors to the PM’s close friends, or the use of our diplomatic resources to funnel contracts to Adani in Bangladesh, Sri Lanka and elsewhere,” Ramesh alleged.
These will require a joint parliamentary committee probe into the issue that will be set up as soon as the INDIA bloc government takes office in June 2024, Ramesh said.
The Congress has been attacking the Adani Group, accusing it of wrongfully benefitting from the BJP government. The party has been demanding a joint parliamentary committee probe into the allegations of stock manipulation made by US research group Hindenburg.
The business conglomerate has denied any wrongdoing on its part.
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