Jairam Ramesh urges RBI, SEBI to probe allegations against Adani Group

New Delhi: Congress General Secretary in-charge Communications Jairam Ramesh sought an investigation into the allegations raised by Hindenburg against Adani Group.

In his letter to Reserve Bank of India (RBI) Governor Shaktikanta Das and Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch, Ramesh asked about the true exposure of Indian banking system to Adani Group.

Another question he raised was about the explicit and implicit guarantees that the Adani Group has been given regarding bailed out of the group by Indian banks if foreign funding dries up.

Ramesh asked the RBI to ensure risks to financial stability are investigated and contained.

Writing alongside to the SEBI chief, Ramesh called for a“fair and complete” investigation into the allegations.

“Any failure to do so will cast a shadow on Indian corporate governance and on India’s financial regulators, and could affect our ability to raise funds globally,” the letter reportedly read.

Further he asked why Life Insurance Corporation (LIC) and the State Bank of India (SBI) bought Adani Group equity rather heavily.

In his letter he observed that LIC which 30 crore Indian trust with their savings lost thousands of crores in Adani Group stock.

“Should we not ensure that such public sector financial institutions are more conservative in their investments than their private sector counterparts and free from pressure from above?” the letter reportedly read.

The Hindenburg Research’s report that alleged stock manipulation and fraud by the Adani Group kicked up a political storm in the nation, leading to Rahul Gandhi directly taking on PM Modi in the Parliament.

Even as its stocks fell, the Adani Group denied all allegations, saying the report is a “lie”.