Govt can't hide 'India's biggest scam', truth is out: Cong on Adani issue

The Congress on Tuesday flagged media reports claiming that Sebi has warned two offshore funds holding Adani Group shares with penalties and said the market regulator's actions might appear on the surface to represent progress but the probe has dragged on for over two years with the conglomerate benefitting from the delay.

There was no immediate reaction from the Securities and Exchange Board of India (Sebi) or the Adani Group on the claims.

Congress general secretary in-charge of communications, Jairam Ramesh, said the "double-engine" Modani saga continues.

"Sebi has reportedly threatened two Mauritius-based offshore funds controlled by Elara Capital --? Elara India Opportunities Fund and Vespera Fund --? with penalties and licence cancellations for failing to provide shareholding details," he said on X.

Ramesh said, these funds have been accused of "stock parking" -- being fronts for benami Adani investments in their own companies in violation of Sebi rules.

"The two funds have reportedly offered to settle the matter without admitting guilt and paying a token fee, which is the course of action most convenient for Modani," the Congress leader said.

In December 2022, 98.78 per cent of the India Opportunities Fund was invested in three Adani Companies, while in June 2022, 93.9 per cent of Vespera was invested in Adani Enterprises, he said.

"Sebi's actions might appear on the surface to represent progress, but the fact is that the Supreme Court had required this investigation to be completed in two months, but it has dragged on for more than two years. The only people who have benefited from this delay are Modani," Ramesh said.

Try as the government may to cover up "India's biggest scam", the truth is coming out, he asserted.

"And if not via India's compromised institutions, they will come out through foreign jurisdictions that Modani cannot bribe, bully, or co-opt," Ramesh said.

The Congress has been persistent in its attack on the government since the Adani Group stocks took a beating on the bourses in the wake of US-based short-selling firm Hindenburg Research making a litany of allegations, including fraudulent transactions and share-price manipulation, on the conglomerate headed by industrialist Gautam Adani.

The Adani Group has dismissed all the charges made by the Congress and others as lies, saying it complies with all laws and disclosure requirements.