'Economic anarchy': Hindenburg, Cong allies, want market crash, claims BJP

After being rejected by Indians, the Congress party and its allies have conspired to create economic instability in the country, alleged Ravi Shankar Prasad, Bharatiya Janata Party MP from Bihar

Former Union Minister Ravi Shankar Prasad on Monday slammed the Opposition Congress party on the fresh Hindenburg row, alleging that it has conspired with the US short seller to usher in an “economic anarchy” in India.

During an official press conference organised by the Bharatiya Janata Party, the Bihar MP alleged that Hindenburg intentionally released the report on Saturday, so that it creates uproar over the weekend and the capital markets is destabilised on Monday.

What did the BJP say on the Hindenburg report?

“...After being rebuffed by the people of India, the Congress party, its allies and the toolkit gang have conspired together to usher in economic anarchy and instability in India… Hindenburg is again at the same game…this report is released on Saturday. On Sunday, there is a huge uproar over the issue, so that on Monday, the entire capital market can be destabilised,” Prasad alleged.

He further said that there was a need to understand the background that led to the Hindenburg report on billionaire industrialist Gautam Adani.

“India’s economy is growing rapidly ... .with highest FDIs, FIIs, institutional investors…India is a safe, stable and promising market in the shares… Sebi’s job is to make sure that market runs smoothly…,” he said, recalling the chain of events of the US short seller’s first report against Adani Group issued in January 2023 and the subsequent developments.

Hindenburg report: Latest allegations unfounded

“The Hindenburg report came last time in January. Of the 24, 22 enquiries had been completed…later on another report was completed… which is a legal process followed according to the orders of the Supreme Court. Congress talks about the Joint Parliamentary Committee (JPC) probe…they should have intervened then but did not do anything. Then Hindenburg is issued a notice in July (by Sebi) that you are answerable for the allegations ... .Instead of answering that, they have opened this new front (latest report),” he said, adding that the latest report is yet again “a baseless attack.”

What does Hindenburg’s latest report say about Sebi?

On Saturday, Hindenburg issued a fresh report alleging that Sebi circumvented the investigation of its earlier allegations against Adani Group of financial misconduct and stock manipulation. The report suggested that Sebi Chairperson Madhabi Buch and her husband held investments in obscure offshore funds linked to the alleged Adani money syphoning scandal.

The Sebi, Buchs and Adani Group have refuted the allegations.

The Congress-led Opposition has sharply criticised these revelations, calling for Buch’s resignation and demanding that the Adani investigation be transferred to the CBI.