Congress, which supported Adani Group, now cries foul over Hindenburg report

The Congress occasion has attacked the Indian conglomerate Adani Group after US-based activist investor group Hindenburg Research printed a 32,000-word report towards it. The funding analysis agency claimed that Adani Group was concerned in a “brazen stock manipulation and accounting fraud scheme over the course of decades.”

Hindenburg Research claimed that it has performed an investigation on the corporate for the final two years and that it has paperwork to show its claims. Hindenburg Research Report accused Adani relations of making and managing “a vast labyrinth of offshore shell entities” in tax havens like Mauritius, Cyprus, and the UAE. The report claimed that a few of these entities have been used for market manipulation.

It mentioned Gautam Adani has a web price of roughly $120 billion, primarily attributable to an 819% common inventory worth progress within the group’s seven most vital publicly traded corporations over the past three years.

On Friday (January 27), Congress chief Jairam Ramesh launched a tirade towards the Adani Group. “Hindenburg has put out a damning report on the Adani group which has reacted predictably”, he tweeted.

Hindenburg has put out a damning report on the Adani group which has reacted predictably. Here is my assertion on this severe matter that requires an intensive investigation within the public curiosity. pic.twitter.com/gfmgmKPx4e

— Jairam Ramesh (@Jairam_Ramesh) January 27, 2023

However, Congress has been supporting the Adani Group for a very long time. The Indian conglomerate has obtained a number of tasks in Rajasthan, below the governance of Congress Chief Minister Ashok Gehlot. The conglomerate has outlined plans to speculate Rs. 65,000 crores in Rajasthan over the subsequent 5-7 years.

These tasks include the event of a ten,000 MW solar energy capability, the enlargement of a cement plant, and the upgrading of the Jaipur airport. Furthermore, in accordance with an RTI, Adani Group and Reliance Industries collectively dedicated the most important funding below the ‘Invest Rajasthan’ program.

The corporations pledged over Rs 1.68 lakh crore between December 2021 and March 2022 by way of Letters of Intent and Memoranda of Understanding with the federal government.

Adani Group had began the Mundra port in Gujarat after it was given wasteland through the Congress-backed Chimanbhai Patel authorities in 1993. The firm had obtained extra land through the Congress authorities headed by Shankersinh Vaghela in 1997. Subsequently, BJP governments below Keshubhai Patel in 1999 and Narendra Modi in 2005 gave the group extra wasteland for enlargement of the port.

Congress supported the Adani group in Maharashtra

During the tenure of the Maha Vikas Agadhi authorities, during which Congress was an alliance companion, the Adani Group was capable of safe the Dighi port challenge in Maharashtra.

The firm efficiently bought a 100% stake in Dighi Port Limited (DPL) for Rs. 705 crores with a plan to speculate over Rs 10,000 crore to develop it as a substitute for Jawaharlal Nehru Port, the nation’s largest container port.

UDF govt awarded new Vizhinjam port contract to the conglomerate

In 2015, the federal government of Kerala, led by Congress, awarded the contract to develop a brand new port at Vizhinjam to Adani Ports. The contract was given by way of using Viability Gap Funding (VGF), as Adani Ports had submitted the bottom grant of Rs 1,635 crore within the public sale.

Despite signing a deal price Rs 7,525 crore between Adani Group and the Kerala authorities, the challenge confronted a number of obstacles. Upon completion, the Vizhinjam port is predicted to change into a major competitor to the transhipment ports of Colombo, Singapore, and Dubai.

It would be the solely transhipment hub within the Indian subcontinent, located in a strategic location on the Indian shoreline and near worldwide delivery routes. This location makes it a central hub for delivery within the area.

It needs to be famous that even through the United Progressive Alliance (UPA) period, the Union authorities had awarded the Adani Group 10 tasks price Rs 21,000 crore.

Adani Group slams Hindenburg Research report

On Wednesday (January 25), the Adani Group trashed the Hindenburg Research report as a ‘malicious combination of selective misinformation and stale, baseless and discredited allegations’.

The Group shares misplaced Rs 46,000 crores in market cap after Hindenburg claimed that the Indian large had participated in a transparent inventory manipulation and accounting fraud scheme over many years.

While the Congress occasion is now utilizing the controversial report back to not directly take potshots on the BJP, it has been on the helm of supporting the very industrialist it had been accusing of crony capitalism.