The Congress on Monday reiterated its demand for a Joint Parliamentary Committee to investigate the full scope of the “Adani MegaScam”, while the Bharatiya Janata Party accused the Opposition of trying to stoke “economic anarchy” in the country.

This came two days after American short-seller Hindenburg Research alleged that Securities and Exchange Board of India chairperson Madhabi Buch and her husband Dhaval Buch had “hidden stakes” in offshore entities tied to stock price manipulation and money laundering by the Adani Group.

On Sunday, the Security and Exchange Board of India said that Madhabi Buch disclosed details about her security holdings and recused herself in matters that potentially involved a conflict of interest.

The market regulator also said that it has adequate internal mechanisms for addressing any conflict of interest, which include a “disclosure framework and provision for recusal”.

Following this, Congress MP Jairam Ramesh said the Supreme Court had directed the Security and Exchange Board of India in March 2023 to conclude the investigation into allegations of stock manipulation and accounting fraud against the Adani Group within two months.

“Now, 18 months later, SEBI has revealed that a critical investigation, likely regarding whether Adani violated Rule 19A relating to minimum public shareholding, remains incomplete,” said Ramesh.

He added: “The fact is that the SEBI’s seeming inability to close two of its 24 investigations delayed the publication of its findings for over a year. This delay conveniently allowed the prime minister to navigate an entire general election without addressing his role in facilitating his close friend's illicit activities.”

Ramesh said that despite the Adani Group’s claims of receiving a “clean chit” the market regulator has reportedly issued show-cause notices to several Adani companies concerning these allegations.

“Moreover, recent revelations raise disturbing questions about SEBI’s integrity and conduct in investigating the Adani MegaScam,” he said.

The Congress leader said that the least Madhabi Buch can do is immediately resign from her post to restore the Securities and Exchange Board of India’s integrity.

He also claimed that the alleged scam by the Adani group extends beyond the 24 matters under the market regulator’s investigation and hence it calls for a Joint Parliamentary Committee inquiry.

“It [the scam] encompasses the source of the Rs 20,000 crore benami [unnamed] funds invested in the Adani Group, the over-invoicing of thousands of crores in coal and power equipment, and the laundering of those proceeds,” Ramesh said.

He also accused the ruling Bharatiya Janata Party government of manipulating Indian foreign policy to secure Adani assets in neighbouring countries like Sri Lanka and Bangladesh.

Centre reacts

Amid an uproar by the recent Hindenburg report, Economic Affairs Secretary Ajay Seth said on Monday that there is nothing further to add by the government on the issue as both the regulator and the concerned person have given the statements, reported The Indian Express.

Seth also holds the post of a part-time member in the Securities and Exchange Board of India board.

Also read: SEBI chief should have recused herself from Adani investigation, say experts

Opposition wants to usher in ‘economic anarchy’, says BJP

Meanwhile, the Bharatiya Janata Party has accused the Opposition of conspiring to “usher in an economic anarchy” in the country.

“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,” BJP MP Ravi Shankar Prasad said at a press conference on Monday. “Hindenburg report is released on Saturday, there is uproar on Sunday so the capital market is destabilised on Monday.”

The BJP leader asserted that the Indian market regulator is safe and stable. He also pointed out that the American short-seller group had failed to respond to the Securities and Exchange Board of India’s notice in a previous inquiry.