BJP Dismisses Hindenburg Report as Political Conspiracy

New Delhi: Amid the Congress-led Opposition onslaught on the Narendra Modi government over the allegations levelled by Hindenburg Research against Sebi chairperson Madhabi Buch, the BJP on Monday questioned the authenticity of the Hindenburg report while alleging that George Soros, who is known for his anti-India propaganda, is the main investor in Hindenburg. The party claimed that the short-selling firm’s charge and the Congress’ criticism of the market regulator were part of a wider conspiracy.

The ruling party attacked the Congress and its allies for “colluding” with Hindenburg in a “deliberate attempt to destabilise the country’s stock market”. The party alleged that the Congress and its allies conspired together to usher in economic anarchy and instability in India because they failed to prevent the Modi-led NDA from forming the government for the third time. The BJP claimed the Congress wants the stock market, which has given good returns to crores of small investors, to crash.

Demanding the Sebi chief’s resignation, the Congress urged the Supreme Court to transfer the Adani probe to the CBI or a Special Investigation Team given the “likelihood of Sebi’s compromise”.

Hindenburg on Saturday launched a broadside against markets regulator Sebi chairperson Madhabi Buch, alleging that she and her husband Dhaval had stakes in obscure offshore funds used in the alleged Adani money siphoning scandal. The Sebi chairman and her husband have denied all these allegations. The Adani Group termed the latest allegations “malicious” and said it has no commercial relationship with the Sebi chairperson or her husband.

The Congress also reiterated that the path forward was to immediately convene a Joint Parliamentary Committee (JPC) to investigate the full extent of what it described as the “Modani mega scam” involving the “self-anointed non-biological PM and a perfectly biological businessman”.

AICC general secretary (communications) Jairam Ramesh said that in its statement on the ongoing investigations into certain financial transactions of the Adani Group, the Securities and Exchange Board of India had sought to project an image of hyperactivity, stating it has issued 100 summons, 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," Mr 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,” Mr Ramesh 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," Mr Ramesh alleged.

Despite the Adani Group’s claims of receiving a “clean chit”, Sebi has reportedly issued showcause notices to several Adani firms concerning these allegations, he said.

Reiterating the BJP’s line that the short-selling firm's charge and the Opposition's criticism of the market regulator are part of a wider conspiracy, former Union minister Ravi Shankar Prasad said: “While India is being globally seen as a safe, stable and promising market, the Congress Party wants to project that the Indian investment scenario is not safe.” He suggested that the Opposition party was seizing on the “chits” provided by foreign entities to damage the economy. The Congress wants the stock market, which has given good returns to crores of small investors, to crash, he said.

“After being rebuffed by the people, the Congress, its allies and its closest ally in the toolkit gang have conspired together to usher in economic anarchy and instability in India,” he told reporters.

Noting that the 10-year-old rule of the Congress between 2004 and 2014 was marked by several alleged scams, Mr Prasad questioned why such critical reports were not brought out then.

Sebi had sent a notice to US-based Hindenburg as part of its probe on the Supreme Court’s orders following the firm’s allegations of stock market manipulation against the Adani group, Mr Prasad said. Hindenburg never replied but instead launched an attack on SEBI chief Madhabi Buch, he added.