New Delhi: Congress general secretary Jairam Ramesh on Thursday stated that the “Adani Mega Scam” exposed the role tax havens play in hiding large-scale violations of Indian laws and regulations.
“These violations are hollowing out our economy and affecting the credibility of our stock markets,” Ramesh said in a post on X (formerly Twitter).
The Congress general secretary further said that the issue should have been discussed at the recent G20 Summit.
“The G20 was the right forum to take up this issue and ensure concrete action against tax havens. But the Prime Minister was busy projecting his own image rather than protecting India’s interests,” he claimed.
The rise in Indian outward direct investment in the past 25 years has been a sign of deepening globalisation. However, it is disturbing that offshore tax havens like Bermuda, Jersey, and Cyprus rank among the top 10 destinations for Indian investment, according to the RBI, he said.
This is in addition to Mauritius which has long been suspected as a preferred destination for Indian money-laundering and round-tripping, the Congress leader noted.
The Congress and other opposition parties have been demanding a Joint Parliamentary Committee (JPC) probe into the Adani issue and will take up the issue during the upcoming special session of Parliament from September 18 to 22.
His post also said that if a JPC probe is ordered into the allegations against the Adani Group, it will have to make sure that any loopholes for round-tripping and money laundering are effectively shut.
The recent controversy erupted when US short-seller Hindenburg Research, in a report released on January 24, alleged accounting fraud, stock price manipulation, and use of tax havens by the Adani Group, triggering a stock market rout.
However, the Adani Group has denied all allegations by Hindenburg.
With inputs from PTI