On Monday, the Modi government at the Center gave this information in the Lok Sabha. In response to another question, the government said that the Supreme Court has directed SEBI to complete the ongoing investigation in connection with the allegations made against the Adani group in the Hindenburg Research report within two months.
Gautam Adani. (Illustration: The Wire)
New Delhi: The Central Government has said that no inquiry committee has been formed by it to investigate the allegations against the Adani Group, but the Securities and Exchange Board of India (SEBI) is ‘inquiring into the allegations’ against the group.
On Monday, the Modi government at the Center gave this information in the Lok Sabha.
The government also said that it has informed the Supreme Court that it has ‘examined the allegations made in the Hindenburg Report as well as market activity before and after the publication of the report’.
Communist Party of India MP in Lok Sabha K. Union Minister of State for Finance Pankaj Chowdhary replied ‘no’ to Subbarayan’s question ‘whether the government has constituted any committee to look into the allegations leveled against Adani group companies by American investment firm Hindenburg Research’ Gave.
On the issue, Revolutionary Socialist Party MP NK Premachandran asked whether the government has analyzed the impact of the Hindenburg report on the corporate sector in the country and whether it has ‘given the Adani group companies reference to reports from nationalized banks and financial institutions of the government’. Proposed to restrict further lending’?
To this Pankaj Choudhary Choudhary replied that ‘As per the Reserve Bank of India (RBI), banks are free to take lending decisions based on their internal assessment of the business viability of the loan within the prudential guidelines of their board approved policies and . Further, RBI has informed that under the provisions of Section 45E of the Reserve Bank of India Act, 1934, RBI is prohibited from disclosing credit information.
Meanwhile, Congress MP Deepak Baij, in a written question, had asked about the credit/credit risk details of Adani group companies of various public sector banks and insurance companies.
In response, Union Finance Minister Nirmala Sitharaman said, ‘Life Insurance Corporation of India (LIC) has informed that its credit exposure to Adani Group of Companies is Rs 6,347.32 crore as on 31/12/2022 and 5/3/2023 respectively. And it was Rs 6,182.64 crore.
He said that ‘five public sector general insurance companies have informed that these companies do not have loans on Adani group companies.
Congress MP Manish Tiwari had asked the question. He also sought information about the agenda of SEBI’s probe and the proposed time frame for its completion. In response to this, Union Minister of State for Finance Pankaj Chowdhary said that the Supreme Court has directed SEBI to complete the ongoing investigation within two months.
In response to the MP’s question regarding ‘the scope of the committee to probe the Adani group as suggested by the government to the Supreme Court and the reasons for giving such suggestions/names in a sealed cover’, the Minister said, ‘The Government of India has Have presented their suggestions in the context of the proposed committee to be constituted by the
He said the suggested terms of reference were shared with the petitioners on the direction of the court. The committee has been asked to provide information on various aspects, including ascertaining the veracity of the allegations made against Adani group companies in the Hindenburg Report.
Further, the reply states that the committee will ascertain the details of all undisclosed ‘short positions’ and other transactions, source of funds and profits earned by short sellers in India or abroad and submit a report.
Several other MPs also raised questions on the issue related to the Adani group in the Lok Sabha.
Another Congress MP S. Jothimani asked about the major findings and outcomes of the investigations by SEBI and the Directorate of Revenue Intelligence (DRI) into Adani group companies.
In response, Minister of State for Finance Pankaj Chowdhary said that ‘investigation related to import of power generation, power transmission and infrastructure (port and SEZ) equipment by Adani group companies has been carried out by the Directorate of Revenue Intelligence and reports submitted before relevant judicial authorities’ Has been.’
With regard to the matter related to the import of Indonesian coal by Adani group companies, the Minister said, “The investigation by the Directorate of Revenue Intelligence has not reached finality as Letters Rogatory (LR) have not been received from the exporting countries for any kind of judicial assistance. Information sought through a formal request made to a foreign court is subject to litigation.
Congress MP from Thrissur TN Prathapan asked about the ‘investigation into stock market manipulation by Adani Group of Companies’.
He had asked, “Whether the government is aware of the decline in wealth of heads of Adani group companies and if so, the details thereof and the response of the government and whether the government is aware of the alleged decline in wealth of Adani group companies.” Are you aware of the reasons?’
In response to this, Pankaj Chowdhary said, ‘After the report published by Hindenburg Research, there was a decline of about 60 percent in the market capitalization of the nine listed companies forming part of the Adani Group from January 24, 2023 to March 01, 2023.’
The minister said that ‘these companies are not part of the Sensex and have a combined weighting of less than 1 per cent in the Nifty.’
He said that ‘volatility in the shares of these companies has not had any significant impact at the systemic level. Nifty 50 declined by about 2.9 percent in January 2023 and recorded a decline of about 4.9 percent in January and February 2023 i.e. 2 months period.
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