Adani-Hindenburg row: Congress launches nationwide protest, calls for probe
What's the story
The Congress on Monday took to the streets nationwide, calling for an impartial investigation into the fraud allegations against Adani Group, which it claimed endangers public savings. Party workers staged demonstrations in front of Life Insurance Corporation (LIC) and the State Bank of India (SBI) offices, sloganeering against the Narendra Modi-led government. Clashes between Congress workers and the police were reported in some areas.
Context
Why does this story matter?
US-based Hindenburg Research has accused Adani Group of unprecedented stock manipulation and accounting fraud, which has endangered people's investments. Following the Hindenburg report, the conglomerate's shares lost significant value, forcing it to withdraw its follow-on public offer (FPO). The share prices of government-owned LIC and SBI, the corpora of public savings that have a stake in Adani's conglomerate, have also plunged significantly.
Protest
Congress demands probe by JPC or former chief justice-led panel
Jammu and Kashmir Congress working president Raman Bhalla and senior party leader Vikar Rasool led the protest rally in Jammu and demanded the constitution of a Joint Parliamentary Committee (JPC) to probe the allegations. Bhalla also demanded an investigation by a retired chief justice into the matter, while lashing out at the government for "investing" LIC and SBI's money into the Adani Group.
Twitter Post
Modi silent, government shielding Adani: Opposition
Vice President of NSUI Andhra Pradesh, Amrut Teja garu leading a protest against the BJP's inaction in The Adani scam. #ModiMuteAdaniLoot pic.twitter.com/VjQhIeUTQY
— INC Andhra Pradesh (@INC_Andhra) February 6, 2023
Statement
Modi's friends looting public money: Congress
The Congress targeted the central government, saying that it is "hell-bent on helping Modi's friends loot public money." Videos showed protesters raising slogans like "Narendra Modi chuppi todo" as it questioned the government's alleged silence over the issue. The grand old party satirically said it was launching a series called "Hum Adani Ke Hain Kaun" to pose three questions to the government every day.
Delhi
Opposition not allowed to raise demand for JPC: Jairam Ramesh
Members of the National Students Union of India (NSUI), the student wing of Congress, held a demonstration at Delhi's Jantar Mantar and burned a suitcase with SBI's logo on it. The Opposition parties also gathered in protest near the Gandhi statue in the Parliament complex. Congress veteran Jairam Ramesh said their demand for a JPC was shushed for the third day in a row.
LIC
LIC's investment value in Adani stocks almost halved
Reportedly, LIC's investment value in Adani's conglomerate almost halved last week, while the gains from appreciation fell nearly four times. LIC's investment value stood at Rs. 81,000 crore on January 24, the day Hindenburg's report was released. Within six trading sessions, this value had depleted to Rs. 43,000 crore. Its purchase value of equity in all Adani Group companies is Rs. 30,127 crore.