Opposition Demands Action on Sebi-Adani Link: Who Will Guard the Guards?

In the latest political uproar, opposition parties, spearheaded by Congress, have launched a severe critique against the government over the ongoing Sebi-Adani investigation. This follows a recent exposé by Hindenburg Research, which alleged that the chairperson of India’s Securities and Exchange Board of India (Sebi), Madhabi Puri Buch, had stakes in obscure offshore entities purportedly linked to the Adani Group’s financial dealings.

The controversy erupted when Hindenburg Research accused Sebi’s chief of having connections with offshore entities involved in the alleged Adani money siphoning scandal. This has intensified calls for action from opposition leaders who are now scrutinizing the integrity of Sebi’s probe into the Adani Group.

Congress’s Critique

Congress, under the leadership of Jairam Ramesh, has vehemently criticized Sebi for its “strange reluctance” to thoroughly investigate the Adani scandal. Ramesh pointed out that the Supreme Court’s Expert Committee had previously noted Sebi’s inaction and regulatory shortcomings. The Committee had highlighted that in 2018, Sebi diluted its reporting requirements, and by 2019, completely eliminated the necessity to report the actual ownership of foreign funds.

Ramesh emphasized that this regulatory laxity had severely hampered Sebi’s ability to act against wrongdoing. He criticized Sebi for reintroducing stricter reporting rules only after the Adani scandal became public. Despite promises of investigating suspicious transactions, the outcomes have reportedly been fruitless.

Political Reactions

Congress MP Shashi Tharoor has called for a thorough investigation into the allegations, stressing the need for clarity to preserve the system’s integrity. He emphasized that either a satisfactory explanation must be provided or a full investigation should be conducted.

Trinamool Congress leader Mahua Moitra has harshly criticized the Sebi chairperson, linking her investments to the Adani Group and accusing the system of crony capitalism. Moitra also urged the Supreme Court to revisit its decision that limited the scope of the probe into the Hindenburg allegations.

Shiv Sena (UBT) leader Priyanka Chaturvedi also questioned Sebi’s failure to respond to queries about Adani group companies and expressed concerns over the abrupt end of the Parliament session.

Hindenburg Research’s Claims

Hindenburg Research’s report, released on a recent Saturday, included whistleblower documents suggesting that Sebi chairperson Madhabi Puri Buch and her husband were involved in offshore funds connected to the Adani case. This has raised significant questions about conflicts of interest at the market regulator.

In response, Madhabi and Dhaval Buch strongly denied these allegations, labeling them as baseless and devoid of truth. They asserted that their finances are transparent and open for scrutiny.

As the political storm continues, the key question remains: Who will ensure accountability in this complex scenario involving the highest levels of regulatory oversight?

Aakhir Tak Editor-in-Chief

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