New Delhi: A united Opposition kept up the pressure on the ruling government for a third day in a row in Parliament on Monday, demanding a detailed response from the government on the Adani Group crisis, and the risk it poses to investors.
Both Houses adjourned till 2 pm as leaders shouted slogans for a joint parliamentary probe into the group’s financial probity after a damning report by an American short-seller sent its shares crashing.
Congress President Mallikarjun Kharge told reporters in the morning that the BJP government did not want the matter to be raised in Parliament. “They want to avoid it somehow and do not want to bring it on record,” he said, adding, “We demand a discussion and are ready for a detailed one… First priority is that PM Modi gives a reply on this issue.”
Congress MP K.C. Venugopal reiterated Monday that the Opposition wanted a joint parliamentary committee (JPC) probe into the Adani crisis. “The government wants to hide everything and they are now being exposed,” he said.
Jharkhand Mukti Morcha MP Dr Mahua Maji questioned why Prime Minister Narendra Modi does not want to face this. “Everything is being privatised gradually, they are being shielded. You can see where the country is heading. The entire Opposition is united… we want answers. Why is Adani being shielded?” she said.
Billionaire Gautam Adani has seen a bloodbath in his port-to-energy-to-media conglomerate and his own personal fortunes in the last 10 days, ever since American short-seller Hindenburg Research accused him of “brazen stock manipulation and accounting fraud.”
By Friday, the industrialist’s listed companies had lost more than $100 billion of their value and a follow-on price offer had been aborted. Once the world’s third-richest man, Adani himself fell to no 17 on the Forbes’ list of billionaires.
The sell-off in the group’s seven listed companies continued Monday, with its flagship Adani Enterprises sinking a further 9.6 per cent in initial trade.
Adani Transmission Ltd dropped 10 per cent, while Adani Green Energy Ltd, Adani Total Gas Ltd, Adani Power, and Adani Wilmar fell roughly 5 per cent. Adani Ports and Special Economic Zone was the only stock in green, with a 1.2 per cent rise.
Financial Times commented on this crisis: “Apart from the future of the billionaire and his business empire, something bigger is on the line: India’s probity in corporate governance and pursuit of a development model in which the state has entrusted a few ultra-rich men with running India’s infrastructure and pioneering investments abroad.”
The Opposition is irked that the government and the regulators are silent on the issue that poses a risk to the common investor. They pointed out that the Adani Group’s revenues have doubled during the NDA rule.
Also read: Will raise Adani row in Parliament: Congress prez Mallikarjun Kharge