Amid the latest row after the capital markets regulator denied probing the Adani group since 2016, the finance ministry has said it stands by its July 2021 reply in which it had said the market regulator was investigating some of the companies of the conglomerate.
"The Government stands by its reply in Lok Sabha on 19th July 2021 to Q. No. 72, which was based on due diligence and inputs from all concerned agencies," the finance ministry said in its latest tweet while replying to senior Congress leader Jairam Ramesh statement on the microblogging platform.
Ramesh, while attaching a screenshot of the minister of state for finance Pankaj Chaudhary's reply in the Lok Sabha on July 19, 2021, termed it as equivalent to "misleading Parliament".
"The Minister of State for Finance, Pankaj Chaudhary, told the Lok Sabha on 19th July 2021 that SEBI was investigating the Adani Group. Now SEBI tells the Supreme Court that they have not been investigating any of the serious allegations against Adani! Which is worse—misleading Parliament, or being fast asleep as lakhs of investors are duped by alleged money laundering and round-tripping using offshore shell companies? Or even worse, was there a restraining hand from above?" he asked in a tweet.
The minister was questioning the government's reply in Parliament, which said: "SEBI is investigating some Adani group companies with regard to compliance with SEBI regulations. Further, the directorate of revenue intelligence (DRI) is investigating certain entities belonging to the Adani group of companies under laws administered by it."
The reply further said: "As far as an investigation under Income Tax Act, 1961, is concerned, the discourse of information regarding specific taxpayer is prohibited except as provided under Section 138 of the Act. No such investigation is going on in the Enforcement Directorate (ED)."
The Centre had also said that in a matter pertaining to issuances of global depository receipts (GDR) by certain Indian listed companies, SEBI on June 16, 2016, had directed depositories to freeze "particular beneficiary accounts of certain FPIs, including Albula Investment Fund, Cresta Fund and APMS Investment Fund. "However, no order in respect of other beneficiary accounts of these beneficiary accounts of these three FPIs has been passed by SEBI," the reply said.
The controversy sparked after SEBI filed a new affidavit in the Supreme Court on May 12, 2023, in relation to the Adani Group-Hindenburg case, saying the allegations that SEBI has been probing Adani Group since 2016 to be factually “baseless”.
It said global depository receipts (GDRs) have been issued against 51 listed companies, in respect of which an investigation was conducted. However, no listed company of Adani Group was part of the aforesaid 51 companies. “Pursuant to the completion of the investigation, appropriate enforcement actions were taken in this matter. Hence the allegation that the Securities and Exchange Board of India (“SEBI”) is investigating Adani since 2016 is factually baseless,” SEBI said.
In relation to seeking more time to complete the investigation in the Adani-Hindenburg case, SEBI said this much time is required “to ensure that justice is carried out while keeping the interest of investors”, and that an incorrect or premature conclusion without full facts would not serve justice and “would be legally untenable.” On May 12, SEBI sought an additional six months' time to complete the investigation of Adani Group companies against the alleged stock market manipulation.
Last month, Gautam Adani-led Adani Group said that there are no conclusions of any alleged wrongdoing in the market regulator's application filed before the Supreme Court.
