The opposition in Parliament has been putting pressure on the ruling government for the third consecutive day, demanding a detailed response on the Adani Scam and the risk it poses to investors. The leaders of the opposition have been shouting slogans and calling for a joint parliamentary probe into the group’s financial probity, following a report by an American short-seller that resulted in the crash of its shares.
Adjournment in Both Houses
Both Houses of Parliament adjourned till 2 pm as leaders continued to voice their demands for a probe into the Adani Group. Congress President Mallikarjun Kharge stated that the BJP government did not want the matter to be raised in Parliament. They were trying to avoid it. He added that the priority was for PM Modi to give a reply on this issue.
Demands for a Joint Parliamentary Committee
Congress MP K.C. Venugopal echoed the demand for a joint parliamentary committee probe into the Adani Scam. The opposition feels that the government wants to hide the matter and are being exposed. Jharkhand Mukti Morcha MP Dr Mahua Maji also questioned why Prime Minister Narendra Modi does not want to face the issue and why Adani is being shielded.
The Adani Group Crisis
Billionaire Gautam Adani’s port-to-energy-to-media conglomerate and personal fortune have seen a decline in the past 10 days after an American short-seller, Hindenburg Research, accused him of “brazen stock manipulation and accounting fraud.” The listed companies of the group have lost more than $100 billion of their value, and a follow-on price offer has been aborted. Adani, who was once the world’s third-richest man, has fallen to no 17 on Forbes’ list of billionaires.
Continued Sell-Off in the Group’s Companies
The sell-off in the group’s seven listed companies continued on Monday, with Adani Enterprises sinking further by 9.6%. Adani Transmission Ltd dropped by 10%, while Adani Green Energy Ltd, Adani Total Gas Ltd, Adani Power, and Adani Wilmar fell roughly 5%. Adani Ports and Special Economic Zone was the only stock in green, with a 1.2% rise.
Probity in Corporate Governance and Development Model
The Financial Times commented on the crisis, stating that 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 concerned about the government and regulators’ silence on the issue. It is 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.
The opposition in Parliament is continuing to put pressure on the ruling government for a response on the Adani Scam. The leaders are demanding a joint parliamentary probe into the group’s financial probity. They were following a report by an American short-seller that resulted in the crash of its shares. The opposition is irked by the government and regulators’ silence on the matter and the risk it poses to the common investor. The sell-off in the group’s listed companies continues, and the future of the billionaire and his business empire is uncertain. The opposition is concerned about the probity in corporate governance and the development model of the country.
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