Congress raises questions over Adani Group's Gangavaram port acquisition

"Only a JPC can uncover how PM Modi has helped his close friend Adani grab so many prize assets in many strategic sectors so quickly, and at a deep discount," Jairam Ramesh said

The Congress on Friday raised questions over the Adani Group's acquisition of the Gangavaram port and asserted that only a joint parliamentary probe can uncover how the conglomerate could "grab so many prize assets" in many strategic sectors so quickly and at a deep discount.

Citing a media report, Congress general secretary said it documents the modus operandi behind the staggering rise of the "Modi-made Monopoly (3M)" in many strategic sectors with a case study of the acquisition of Gangavaram port.

In a post on X, Ramesh said it leads to many "piquant" questions" such as how did Adani buy a debt-free Gangavaram port in Andhra Pradesh that should be valued at double of the Rs. 6,200 crore it paid, by any reasonable valuation metric.

"How was it acquired at a much lower EBIDTA (earnings before interest, taxes, depreciation, and amortization) multiple than Adani's own deal with the debt-laden Krishnapatnam port and how did Adani pick up six ports in just nine years without any other bidding whatsoever," Ramesh asked.

How did the Adani Group's EBIDTA grow 17 times in only five years from 2017-18, he further asked.

Ramesh alleged that the stated strategy of the Adani group is "the acquisition of companies and services in the transport utility space" with a "sustained focus on acquisitions at a deep discount value".

"Since February 5, 2023, we have asked the Prime Minister more than 100 questions on his special relationship with Adani, through the Hum Adani ke Hain Kaun(HAHK) series," the Congress leader said.

"Only a JPC can uncover how PM Modi has helped his close friend Adani grab so many prize assets in many strategic sectors so quickly, and at a deep discount," the Congress leader said.

The Congress has been questioning the financial dealings of the Adani group after US research firm Hindenburg alleged "irregularities" and charged the group with stock price manipulation. The Adani Group denied all the allegations made in the Hindenburg report and claimed there had been no wrongdoing on its part.

Opposition parties have also been demanding a Joint Parliamentary Committee probe into the Adani issue.