NEW DELHI: Congress leader Jairam Ramesh on Monday took a swipe at the Centre over its reply in the Supreme Court regarding appointing a committee in connection with the Hindenburg’s report on Adani Group, and questioned the government on why it was not agreeing to a joint parliamentary committee (JPC).
He further said that the government’s objective is to paint anyone that questions “Adani’s wrongdoings as anti-India”.
The Congress leader alleged that the government agreeing to constitute a committee to protect investor interests has more to do with the “Hindenburg’s expose”.
“It’s clear why Modi Govt has agreed to a committee in the Supreme Court. It has less to do with Adani but more to do with Hindenburg’s expose. The objective is to paint anything/anyone that questions Adani’s wrongdoings as anti-India. That is why no JPC,” Jairam tweeted.
Earlier on Monday, the central government informed the Supreme Court that SEBI is competent to handle the situation and it has agreed to constitute a committee to protect investor interests, following Hindenburg’s report on Adani Group.
Solicitor General Tushar Mehta informed a bench of Chief Justice DY Chandrachud that SEBI is completely equipped to deal with the situation that took place due to a recent report by Hindenburg.
He also said that the government has no objection to appointing a committee to suggest ensuring investors are protected in the future. However, he said that the remit of the committee is important since it has an effect internationally. He also said that the government will provide names in a sealed cover.
The court adjourned the hearing on two petitions related to the Hindenburg report on Friday. The court asked the Centre to apprise it about the remit of the committee by the next hearing.
Last week, the Supreme Court sought a response from the Ministry of Finance and SEBI on how to ensure that Indian investors are protected in future against sudden volatility observing the recent crash due to the Hindenburg Research report.
The bench has also suggested the need to form a committee of experts from various areas like the securities area, international financial law experts, and someone from the regulatory body led by the wise guidance of a former judge. The court has also suggested that the regulatory body could think of ways to modify statutory regulatory provisions in such a way that in the future the Indian investors could be protected.
The court has clarified that this is an open dialogue to ensure Indian investors are protected and are not on a witch-hunt.
The Adani Group had termed Hindenburg as “an unethical short seller” and stated that the report by the New York-based entity was “nothing but a lie”.
The continued sell-offs in the group’s stocks led its flagship firm, Adani Enterprises Limited, to cancel a fully subscribed Rs 20,000 crore follow-on public offer.
Adani Group on January 29, in a long 413-page report, said the recent report by Hindenburg Research was not an attack on any specific company but a “calculated attack” on India, its growth story, and ambitions. (ANI)