Public sector institutions like the SBI and LIC have made significant investments and advanced huge loans to the conglomerate, the party said.
United States-based company Hindenburg Research’s allegations of stock manipulation and use of offshore tax havens by the Adani Group should be investigated by the Reserve Bank of India and markets regulator Securities and Exchange Board of India, the Congress demanded on Friday.
In a report published on Wednesday, Hindenburg had claimed that key listed companies of the Adani Group are on a “precarious financial footing”. It alleged that the conglomerate headed by India’s richest person, Gautam Adani, has amassed substantial debt by pledging overvalued shares.
In a statement released on Friday, Congress general secretary in charge of communications Jairam Ramesh expressed concerns, pointing out that public sector financial institutions like the Life Insurance Corporation and the State Bank of India have exposure to the Adani Group.
Ramesh claimed that 8% of the LIC’s equity assets, amounting to Rs 74,000 crore, are invested in Adani Group companies. Moreover, 40% of the loans advanced to the conglomerate have been from the SBI, the Congress MP said.
“These institutions have liberally financed the Adani Group even as their private sector counterparts have chosen to avoid investing because of concerns over corporate governance and indebtedness,” the statement noted.
