Explosive Panel Report on Adani Empowers BJP: ‘Rahul Gandhi’s Speechwriters…’


In a significant turn of events, nine out of 10 Adani Group stocks experienced an upward trajectory in Mumbai on Friday following the public release of a report by a court-appointed panel. The report stated that it could not establish any instances of regulatory failure concerning the Adani Group’s stock rallies, prompting the Bharatiya Janata Party (BJP) to criticize Congress leader Rahul Gandhi for his aggressive pursuit of the issue in an attempt to target Prime Minister Narendra Modi. BJP representatives suggested that Gandhi’s speechwriters would need to concoct more outlandish claims to sustain his alleged falsehoods.Bloomberg/Bloomberg via Getty Images

The interim report, issued by an expert committee mandated by the Supreme Court, revealed that the Securities and Exchange Board of India (SEBI) had not uncovered any evidence of wrongdoing in relation to alleged money flow violations from offshore entities into the Adani conglomerate. However, the committee did acknowledge the existence of short positions built up on Adani Group stocks prior to the release of a report by Hindenburg Research, a US-based short seller, and the subsequent profit-making through the closing of positions after stock prices plummeted following the publication of damning allegations.

Supreme Court Steps In: Expert Committee Investigates Adani-Hindenburg Allegations

Earlier this year, Gautam Adani’s conglomerate witnessed a staggering loss of over $100 billion in market value after Hindenburg Research raised numerous concerns regarding governance.

During the budget session, Rahul Gandhi of the Congress party sought to corner the ruling BJP by highlighting the perceived proximity between Prime Minister Modi and billionaire Gautam Adani. This matter quickly became a rallying point for opposition parties, who intensified their pressure for a Joint Parliamentary Committee investigation.

While the government chose to disregard these demands, the Supreme Court established a committee on March 2 to examine potential regulatory failures and propose measures to protect investors.

“After considering the explanations provided by SEBI, supported by empirical data, the committee, at this stage, finds it impractical to conclude that there has been a regulatory failure in relation to the allegations of price manipulation,” stated the six-member panel.

Reacting to the report, Amit Malviya, the head of the BJP’s IT cell, took to Twitter and remarked, “After the people of India held Rahul Gandhi and the Congress party accountable for their ‘Chowkidar Chor Hai’ remark and their malicious campaign against Rafale, which posed a threat to India’s air defense modernisation program, the Supreme Court-appointed Expert Committee investigating the Adani-Hindenburg report has informed the Court that, at this stage, based on SEBI’s explanations and supported by empirical data, the Committee cannot conclude that there has been any regulatory failure pertaining to the allegations of price manipulation.”

He further added, “Rahul Gandhi’s speechwriters will now have to come up with something even more outlandish to sustain his fabrication machine.”

Unraveling the Adani Controversy: Market Manipulation or Lack of Evidence?

The committee’s report has provided a respite to the Adani Group, as the stocks witnessed a positive response in the market.Adani Group news: Adani Group tells stock exchanges to protect investor interest - The Economic Times The allegations surrounding regulatory failure have been met with a lack of substantial evidence, prompting questions regarding the motives behind the initial claims and the subsequent political maneuvering by Rahul Gandhi and the Congress party.

As the market awaits further developments and potential reforms for investor protection, it remains to be seen how this saga will unfold and whether it will have any lasting impact on the Adani Group’s reputation and the political landscape. 

The Adani Group, a prominent conglomerate controlled by Gautam Adani, experienced a significant boost in market confidence as nine out of 10 Adani Group stocks traded higher in Mumbai. This surge came in the wake of a report released by a court-appointed panel, which stated that it could not find any evidence of regulatory failure in relation to the Adani Group’s stock rallies.

The panel’s interim report, commissioned by the Supreme Court, shed light on the investigations conducted by the Securities and Exchange Board of India (SEBI) into alleged violations concerning the flow of money from offshore entities into the conglomerate. Surprisingly, the committee found that SEBI’s probe did not yield any concrete evidence to substantiate the allegations. This revelation dealt a blow to the accusations of regulatory misconduct that had plagued the Adani Group.

However, the committee did highlight a noteworthy aspect regarding the build-up of short positions on Adani Group stocks prior to the release of a report by Hindenburg Research, a US-based short seller. The subsequent closure of these positions after the publication of the allegations led to a crash in stock prices, enabling certain entities to profit from this decline. While this observation did not imply regulatory failure, it did raise questions about potential market manipulation and its impact on the Adani Group’s stock value.

The Adani Group faced a significant setback earlier in the year when Hindenburg Research raised concerns about the conglomerate’s governance practices. This prompted a steep decline in market value, causing the conglomerate to lose over $100 billion. The report by Hindenburg Research had a substantial impact on the public perception of the Adani Group, leading to widespread debates and scrutiny.

The political landscape also became entangled in the controversy surrounding the Adani Group. Congress leader Rahul Gandhi sought to exploit the situation during the budget session by highlighting the alleged proximity between Prime Minister Narendra Modi and Gautam Adani. Gandhi’s attempts to corner the ruling Bharatiya Janata Party (BJP) on this issue gained momentum, with opposition parties demanding a Joint Parliamentary Committee investigation into the matter.

However, despite mounting pressure, the government did not concede to the demands for an investigation. Instead, the Supreme Court took the initiative and constituted an expert committee on March 2. The committee was tasked with examining potential regulatory failures and proposing reforms aimed at protecting investors.

The committee’s findings, as detailed in the interim report, provide some respite to the Adani Group. The panel, after analyzing SEBI’s explanations supported by empirical data, concluded that there was no clear evidence of regulatory failure in relation to the allegations of price manipulation. This outcome raises questions about the veracity of the initial claims and the political motives behind the accusations.

In response to the panel’s report, the BJP’s IT cell head, Amit Malviya, took to Twitter to express his views. Malviya pointed out that the Indian public had previously held Rahul Gandhi and the Congress party accountable for their “Chowkidar Chor Hai” remark and their campaign against the Rafale deal, which posed a threat to India’s air defense modernization program. He emphasized that the Expert Committee’s findings further weakened Gandhi’s credibility, suggesting that his speechwriters would now need to concoct even more outlandish claims to sustain his alleged falsehoods.

As the market digests the committee’s report and its implications, the Adani Group can take some solace in the positive response witnessed in stock trading. The report’s lack of substantial evidence regarding regulatory failure raises questions about the initial allegations and the subsequent political manoeuvring surrounding them.

Moving forward, attention will undoubtedly turn to potential reforms aimed at investor protection, as suggested by the expert committee. These reforms may play a crucial role in strengthening regulatory mechanisms and enhancing market integrity. The outcome of this ongoing saga will have implications not only for the Adani Group’s reputation but also for the broader political landscape in India.


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