scorecardresearch
Adani group firms 'run afoul of Indian laws', probe them on FPI investments: Mahua Moitra to FM

Adani group firms 'run afoul of Indian laws', probe them on FPI investments: Mahua Moitra to FM

Six companies of the Adani Group are listed and traded on recognised stock exchanges in India. The holding of FPIs is based on the daily trading of shares

Representative Image Representative Image

Lok Sabha member of Parliament and TMC leader Mahua Moitra has asked finance minister Nirmala Sitharaman to investigate Adani group companies on foreign portfolio investments (FPIs) owning a substantial interest in these companies.

This comes amid the reports of an ongoing investigation into Adani Group companies, which are under the scanner of market regulator Securities and Exchange Board of India (SEBI) and the government's directorate of revenue intelligence (DRI) for non-compliance of rules.

Moitra's letter to FM Sitharaman, which she also shared on Twitter, stated, “Written again to Hon’ble FM, RBI, CBDT, ED, DRI et all demanding urgent investigation into over-invoicing by Adani companies, round-tripping of funds & dodgy FPI investments.”  

She added that "in continuation with my previous letter dated 21st June 2021 (attached), further information on the modus operandi of the Adani Group has been received by me. Details of over-invoicing, round-tripping of funds, manipulating markets, disadvantaging minority shareholders, all activities that run afoul of Indian laws."

Moitra said this is the second letter she has written. The previous letter was sent on July 21.

Moitra, in the letter, claimed that “while this information may already be known to officials, I believe that it is important that [the] nation knows the truth behind many of these allegations as the Group is being handed several strategic assets of the nation. By its own admission, the group will control 40 per cent of air, sea and logistics infrastructure soon… Further, it seems that delisting of Adani Power in order to hide this fraud needs to be seriously looked into given allegations that have come to the fore.”

Adani Group, to clear the air around the matter, released a statement on July 19 and stated, “We have always been transparent with all our regulators and have full faith in them... Adani Group is a responsible corporate citizen and strongly believes in compliance of applicable laws and adheres to prudent corporate governance framework.”

Six companies of the Adani Group are listed and traded on recognised stock exchanges in India. The holding of FPIs is based on the daily trading of shares.

Also Read: Zomato share gains for second straight session after bumper listing
Also Read: Tata Motors Q1 consolidated loss narrows to Rs 4,451 cr; JLR revenue up 73.7%
Also Read: Govt cuts import duty on masur dal to zero; halves agriculture infra cess to 10%