Supreme Court must transfer Adani probe to CBI or SIT given 'likelihood of SEBI's compromise’: Congress

New Delhi, August 12

Amid the raging row over the Hindenburg Research's allegations against SEBI chairperson Madhabi Buch, the Congress on Monday demanded her resignation and urged the Supreme Court to transfer the Adani probe to the CBI or a Special Investigation Team given the "likelihood of SEBI's compromise".

The opposition party also reiterated that the path forward is to immediately convene a Joint Parliamentary Committee (JPC) to investigate the full extent of the “scam”.

The Congress's assertions came a day after the SEBI said allegations against the Adani Group have been "duly investigated", and chairperson Madhabi Buch disclosed and recused herself from time to time when dealing with matters.

Congress general secretary in-charge communications Jairam Ramesh said that in its statement on the on-going investigations into certain financial transactions of the Adani Group, the Securities and Exchange Board of India (SEBI) has sought to project an image of hyperactivity, stating that it has issued 100 summonses, 1,100 letters and emails, and examined 300 documents containing 12,000 pages.

"This must have been very exhausting, but it diverts attention from the core issues involved. Actions matter, not activities," Ramesh said in a statement.

"On February 14, 2023, I had written to the SEBI chairperson urging SEBI to play its role as the steward of India's financial markets on behalf of the crores of Indians who have faith in the fairness of India's financial markets. I never received a reply," the Congress leader said.

On March 3, 2023, the Supreme Court directed SEBI to "expeditiously conclude the investigation" into allegations of stock manipulation and accounting fraud against the Adani Group within two months, he pointed out.

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, he said.

"The fact is that 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 alleged.

Despite the Adani Group's claims of receiving a 'clean chit', SEBI has reportedly issued show-cause notices to several Adani firms concerning these allegations, he said.

However, the slow pace of these investigations, especially compared to the swift 'justice' that the prime minister's investigative agencies usually deliver to opposition leaders, remains inexplicable, Ramesh said.

"Moreover, recent revelations raise disturbing questions about SEBI's integrity and conduct in investigating the Adani mega scam," he said.

"SEBI, long considered a trustworthy global financial market regulator, is now under scrutiny. It is shocking to discover that SEBI chairperson and her husband invested in the same opaque Bermuda and Mauritius-based offshore funds where Vinod Adani and his close associates, Chang Chung-Ling and Nasser Ali Shaban Ahli, also invested," he said.