Contrary to the managed headlines, the commercial partner in Modani Enterprises has now received a “clean chit” from SEBI only in two of the twenty matters being investigated by it under a Supreme Court-mandated probe. The Supreme Court, on 2 March 2023, had directed SEBI to “conclude the investigation within two months” following the Hindenburg Report. Yet, the first SEBI orders were delivered only after two years and seven months, following repeated extensions and delays.
Despite Supreme Court’s directive for swift investigation
We now await SEBI’s findings on the remaining 22 matters, which include allegations of insider trading in Adani Group companies, violations of rules relating to minimum public shareholding, and the 13 “suspicious transactions” that SEBI told the Supreme Court on 25 August, 2023, that it was investigating. These involve offshore dealings by close Adani associates Nasser Ali Shaban Ahli and Chang Chung-Ling.The Modani scam, however, extends far beyond the scope of SEBI’s investigations. As the Indian National Congress had revealed in its list of hundred questions in the HAHK (Hum Adani ke Hain Kaun) series of questions to the Prime Minister, it also encompasses:
SEBI’s delayed orders cover just two cases
1. The misuse of agencies such as the ED, CBI, and Income Tax Department to force companies to sell off their assets to the Adani Group.
2. Biased privatisation of critical infrastructure assets like airports and ports for the benefit of only the Adani Group.
3. The misuse of diplomatic resources to funnel contracts to the Adani Group in different countries, especially in the neighbourhood.
4. The import of over-invoiced coal by Ahli and Chang, which contributed to sharp increases in the prices of electricity drawn from Adani power stations in Gujarat.
5. A ₹2,000 crore ($250 million) bribery scheme allegedly orchestrated by Gautam Adani and seven associates to secure high-priced solar power contracts in India – regarding which the Modi government has refused, for nearly a year, to serve a US SEC summons to the PM’s partner.
