The Opposition parties on Sunday hit out at Prime Minister Narendra Modi-led Central government over US-based Hindenburg Research’s new report which claimed that the SEBI chief Madhabi Buch herself was involved in the case as she had stakes in the company.
In a post on X, Congress general secretary Jairam Ramesh said that SEBI’s strange reluctance to investigate the “Adani MegaScam” had been noted for a long time. He also demanded a probe by a Joint Parliamentary Committee.
SEBI’s strange reluctance to investigate the Adani MegaScam has been long noted, not least by the Supreme Court’s Expert Committee, he said. Adding that Committee had pointed out in its report that SEBI had in 2018 diluted and, in 2019, entirely deleted the reporting requirements relating to the ultimate beneficial (i.e. actual) ownership of foreign funds.
In his statement, he added that this had tied its hands to the extent that ‘the securities market regulator suspects wrongdoing, but also finds compliance with various stipulations in attendant regulations. He further said citing experts that it is this dichotomy that has led to SEBI drawing a blank worldwide.
Hindenburg Research’s latest allegation raises fresh questions about Gautam Adani’s two 2022 meetings in quick succession with Buch shortly after she was appointed as SEBI chairperson, the Congress leader said in a statement.
Earlier, in another post, Ramesh used the Latin phrase ‘Quis Custodiet Ipsos Custodes’ (Who will guard the guards themselves) to take a swipe at Madhabi Buch.
Meanwhile, Congress MP Manish Tewari said that a JPC must be constituted to go into the entire Hindenburg saga.
Speaking on the matter, he said that there has been certain revelations by the Hindenburg Research which have been put out in the public space.
The Congress leader said that they require closer scrutiny, underlining that, there seems to be some semblance of an alleged conflict of interest and so therefore under those circumstances there has been a demand in the public space for a while that the entire Hindenburg saga needs to be investigated properly by a joint parliamentary committee is constituted to go into all these issues at length.
The Trinamool Congress MP Mahua Moitra also took a dig over the allegations, saying that in true Adani style, even the SEBI chairman is an investor in his group.“Crony Capitalism at its finest,” she said in a post on X.
Moitra also demanded that the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) investigate alleged money laundering.
The AAP leader and Rajya Sabha MP Sanjay Singh, taking to X, wrote, “The Hindenburg revelations were hinted at 3 days before Modi ended the Parliament session. Modi Government is steeped in corruption from head to toe. To save his friend Adani, Modi Ji got the investigation done by the same SEBI Chairman who had committed the scam in connivance with Adani. SC should reconsider its decision.”
The Samajwadi Party leader Ghanshyam Tiwari also lashed out at the Central government and said that the tenure of PM Modi will be known for ‘Adani-waad’.
He said the whole world witnessed a different session with different ideologies but the term of PM Modi will be known as ‘Adani-waad’. In this Adani-waad, he said, they captured the whole economic system of India in such a way that Gautam Ad could benefit, it looks like this is the only motive of Prime Minister Modi.
The US short-seller Hindenburg Research released its reports on August 10 alleging market watchdog SEBI chairperson Madhabi Buch and her husband Dhaval Buch were involved in Adani Group’s offshore funds. The report further suggested that these obscure financial systems were allegedly used in the money-siphoning scandal.
However, at the centre of the storm, the SEBI chairperson and her husband issued a joint statement denying all charges. They said that it was an attempt of “character assassination.
According to the Hindenbur report, Madhabi Buch and her husband Dhaval Buch first appear to have opened their account with IPE Plus Fund 1 on June 5th, 2015 in Singapore, per whistleblower documents.
A declaration of funds, signed by a principal at IIFL states that the source of the investment is “salary” and the couple´s net worth is estimated at $10 million.