The New York State prosecutor claimed that the businessman close to Prime Minister Narendra Modi lied about investigations regarding his account and the transparency of his companies to attract American investments. However, history also highlights the deficiencies of the securities regulator, the Securities and Exchange Board of India.
New Delhi () – The shares of Indian billionaire Gautam Adani’s companies plummeted on the stock market following recent fraud accusations made by the United States. Adani, his nephew Sagar and six others were accused of offering bribes worth more than $250 million to Indian government officials to secure a series of contracts in the solar energy sector that would also be financed by American investors. .
The New York State prosecutor, who has been investigating the case for a couple of years, stated that the Adani group obtained financing by spreading misleading information and hiding the corruption scheme related to the bidding. Two arrest warrants have been issued for Adani and his nephew. “All possible legal avenues will be resorted to,” Adani said, stating that the accusations are “baseless.”
According to opposition leader Rahul Gandhi, the tycoon will not be arrested because he enjoys the protection of the Prime Minister of India, Narendra Modi, thanks to whom he obtained a large number of tenders, mostly linked to infrastructure projects or development. renewable energy together with the entities of the government of India.
The Congress leader also called for the dismissal of Madhabi Puri Buch, president of the body that regulates stock market operations in India, the Securities and Exchange Board of India (or SEBI), and accused her of not investigating the crimes committed by the Adani group. . Other members of the opposition They also questioned the extent to which the Indian prime minister and his party, the Bharatiya Janata Party (BJP), were involved in the corruption operations reported by the United States. At the press conference, BJP spokesperson Sambit Patra avoided going into details, stating that the law “will take its course” and noted that, in their report, American judges cite the payment of bribes even in Indian states that in the At the time of the events they were not governed by the BJP.
Yesterday, the shares of the ten listed companies of the Adani group suffered losses of more than 2 trillion rupees, while Adani Green Energy, which in the State of Gujarat is building the “world’s largest renewable energy plant”, after having won the Indian government tender, withdrew a $600 million bond offer.
This is not the first time Adani has been accused of fraud. Last year, investment research firm Hindenburg Research published a report revealing stock manipulation by Adani. And in August this year, the probe group also accused SEBI chairperson Madhabi Puri Buch of having links with Adani’s offshore funds. All accusations have been denied so far and Buch in particular has refused to reveal any type of information, raising a series of questions about the actions of the regulatory body.
In March this year, Adani, speaking to financial institutions, said he was not aware of any investigation into his companies. American investigators showed him to be lying: Adani had known for at least a year that the FBI was conducting an investigation into corruption and financial misconduct, but he preferred to hide the facts from investors.
These claims should have been verified by the SEBI, which in January of this year had already received an order from the Supreme Court of India to determine whether the losses of Indian investors after the publication of the Hindenburg Research report were due to violations. of the law. According to the research site The WireSEBI “presumably has not adequately examined the documents and annual reports of the Adani group.” Earlier this year, the judges had noted that if deficiencies on the part of SEBI in carrying out checks were revealed, the Court would reserve the right to entrust the investigations to an independent agency or a special investigation team appointed by the Supreme Court.
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