AICC (Organisation) General Secretary KC Venugopal described the allegations as “very serious”. | Photo: PTI
Stepping up its attack on the Narendra Modi government over Hindenburg Research’s allegations against Sebi chairperson Madhabi Puri Buch, the Congress on Monday threatened to launch a nationwide protest if its demand for a Joint Parliamentary Committee (JPC) probe into the matter is not accepted.
Hindenburg Research, an investment research firm that uses activist short selling to expose corporate fraud and malfeasance, alleged on Saturday that Sebi chairperson Madhabi Puri Buch and her husband had undisclosed investments in shadowy offshore funds in Bermuda and Mauritius, the same entities allegedly used by Vinod Adani – the elder brother of group chairman Gautam Adani – to shuttle funds and inflate share prices.
AICC general secretary (organisation) KC Venugopal described the allegations as “very serious” and accused the prime minister of supporting the Adani Group and its chairman Gautam Adani in the matter.
He pointed out that the Supreme Court verdict in this case was based on the Sebi report but Sebi chairperson Madhabi and her husband had not disclosed to the apex court their investments in the offshore entities linked to Adani.
“It is a situation where the fence itself is eating the harvest; even the Supreme Court was fooled,” the Congress leader said. “The Supreme Court should take up the case on its own.”
He also said that Congress will study the legal aspects before taking the matter to the highest court.
“The prime minister’s silence on the issue amounts to destruction of credibility,” Venugopal told reporters at the airport.
He accused the Union government of trying to divert people’s attention from the issue by using the Enforcement Directorate against Leader of Opposition in Lok Sabha Rahul Gandhi.
“Please do not try to threaten Rahul Gandhi with an ED notice. We will strongly oppose such diversionary tactics,” the Alappuzha MP said.
Venugopal said, “This is the most serious problem in the country” and warned that if their demand for a JPC inquiry is not accepted, they will go ahead with a strong protest.
“The Hindenburg report has shocked the nation. The Sebi chairman, who is responsible for regulating the stock market, ensuring its credibility and taking action against scams, allegedly has investments in such shell companies (linked to the Adani Group). How does the government view this news? It is surprising that despite such a serious allegation, Buch is still in the same position,” he said.
He said the actions of tens of thousands of people are in crisis.
“Why is the government afraid of a Joint Parliamentary Committee? Doesn’t that mean there is something to be afraid of already?” Venugopal asked, adding that the Congress bloc and INDIA will launch a nationwide protest if the Centre refuses to constitute the JPC.
Buch and her husband, Dhaval Buch, responded to Hindenburg’s complaint in a joint statement on Sunday, saying the investments were made in 2015, well before her appointment as a full-time member of Sebi in 2017 and her subsequent elevation to chairperson in March 2022, and in their capacity as “private citizens living in Singapore”. These funds became “dormant” after their appointment at Sebi, they said.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 12, 2024 | 18:48 IS
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