Aam Aadmi Party (AAP) MP Sanjay Singh on Thursday gave a suspension of business notice to Rajya Sabha Chairman Jagdeep Dhankar demanding a discussion on the allegations of financial irregularities and fraud against Adani group. Serving the notice under Rule 267, Singh mentioned that a case of manipulation of shares, financial irregularities and fraud on a large scale by the ‘Adani Group’ has come to the fore. “These allegations are so serious that Life Insurance Corporation of India (LIC) which holds the shares of Adani Group’s stocks worth more than Rs 81 thousand crores had a loss of about Rs 16,580 crores,” he said.
Quoting the Hindenburg Research Report, he said in the notice that crores of rupees of many public sector banks of the country including the State Bank of India (SBI) are at stake as the Adani Group has currently a debt of more than Rs 2.2 lakh crore. “According to the report, seven listed companies of the Adani Group have been over-evaluated for more than 85 per cent. These companies have taken loans by mortgaging their shares on a large scale. There have been several cases registered against the members of Adani’s family and his group officials,” the notice said.
He further mentioned that many government institutions including LIC, and SBI continued to invest in Adani Group despite the latter’s role in serious offences like money laundering, and theft of taxpayers’ money. Even the grant of a Follow-on Public Offer (FPO) worth Rs 20,000 crore to the Adani enterprises and the nod for the demand of investor’s money without the completion of SEBI’s investigation also hints at wider economic impropriety, he claimed. “Taking cognizance of such a serious matter, the sooner the investigation is started, the sooner the interests of investors and the general public can be protected, otherwise, it will destroy the lives of crores of Indians who invest their money for savings in companies like LIC and SBI. Considering the above critical circumstances, you are humbly requested to postpone other works of the House under Rule 267 and discuss this very serious matter related to the public interest in the House,” he said in the notice.
Earlier today, Communist Party of India MP Binoy Viswam has also given a suspension of business notice to Rajya Sabha Chairman demanding a discussion on the Adani stock crash, terming the matter as “urgent”. Shares of Adani Enterprises nosedived sharply on Wednesday, a day after its follow-on public offer closed for the subscription. The shares of Adani Group flagship company closed at Rs 2,179.75 with a sharp decline of 26.70 per cent. Its intraday low was Rs 1,941.2, over 30 per cent lower than Tuesday’s settlement price. On Tuesday, the last day for subscription, the follow-on public offer (FPO) issued by Adani Enterprises was fully subscribed.
A follow-on public offering (FPO) is the issuance of shares to investors by a company listed on a stock exchange after its initial public offerings. Data showed the demand for the FPO was led by non-institutional investors, and they subscribed to the shares 3.26 times. The portion for institutional investors was also oversubscribed.
Adani Enterprises had filed a red herring prospectus with the markets regulator Securities and Exchange Board of India (SEBI) for the Rs 20,000 crore follow-on public offer (FPO), the largest ever in India. US-based Hindenburg Research report that surfaced on January 24, claimed the Adani Group of having weak business fundamentals among others. It raised concerns about shares of Adani group companies having a possibility of declining from their current levels, owing to high valuations.
In response, Adani Group on Sunday 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. It added the report was “nothing but a lie”.