Jairam Ramesh slams SEBI’s Adani Probe, calls for Chairperson’s resignation

NEW DELHI: In a sharp statement posted on X, Congress MP Jairam Ramesh has sharply criticized SEBI’s handling of the Adani Group investigation, accusing the regulator of focusing on the number of its actions—such as issuing 100 summons and examining 300 documents—rather than delivering meaningful results.

Our statement of Aug 12, 2024, in response to SEBI’s statement of Aug 11, 2024 pic.twitter.com/uDk7JAiURG

— Jairam Ramesh (@Jairam_Ramesh) August 12, 2024

Ramesh pointed out that despite a Supreme Court directive in March 2023 to expedite the probe into Adani’s alleged stock manipulation and accounting fraud, SEBI has yet to conclude its investigation 18 months later. Ramesh alleged, “This delay conveniently allowed the Prime Minister to navigate an entire general election without addressing his role in facilitating his close friend’s illicit activities.”

Ramesh also raised concerns about the integrity of SEBI’s leadership, alleging conflicts of interest involving SEBI’s Chairperson, who he claimed had investments in offshore funds linked to Vinod Adani. He argued that this might explain the prolonged investigation, which he said has benefited both Adani and the Prime Minister.

Ramesh called for the Supreme Court to transfer the investigation to the CBI or a Special Investigation Team (SIT) and demanded the resignation of the SEBI Chairperson to restore the regulator’s integrity.

Terming the fiasco as the “Modani MegaScam”, the Congress MP said, “The path forward is to immediately convene a Joint Parliamentary Committee (JPC) to investigate the full extent of the Modani MegaScam involving the self-anointed non-biological PM and a perfectly biological businessman.”

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In the same post, the Congress leader addressed a letter to SEBI Chairperson Madhabi Puri Buch, urging a thorough investigation into the Adani Group following recent allegations of stock manipulation and accounting fraud.

Ramesh emphasized that these allegations, which involve a “vast labyrinth of offshore shell entities,” are a serious violation of Indian laws and undermine the transparency that SEBI is supposed to uphold.

In his letter, Ramesh urged the apex institution “to investigate all potential violations and to ensure complete transparency about who is investing in Adani Group companies… Any failure to do so will cast a shadow on Indian corporate governance and on India’s financial regulators, and could affect our ability to raise funds globally.”

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Ramesh also questioned the heavy investment by public sector institutions like LIC and SBI in Adani Group stocks, despite concerns over corporate governance. He noted that LIC, trusted by millions of Indians with their savings, has suffered significant losses due to its investments in Adani.

Raising questions over SEBI’s functions, Ramesh commented, “In recent days, global stock indices have suspended Adani Group companies while the matter is investigated, but the NSE has failed to take any similar action to protect investors. Is it not SEBI’s responsibility to ensure that index investors are protected from investing in questionable firms?”