'Blinkers on only when it comes to Adani': Mahua Moitra takes a dig at Centre over shell companies

Trinamool Congress (TMC) MP Mahua Moitra on Monday, while criticising the government over the Adani-Hindenburg row, said that the government identified 2,38,223 shell companies between 2018-2021, even in the absence of any "specific definition in law."  

However, she added that, "Blinkers on only when it comes to Adani group family shells in Mauritius". 

"Government identified 238,223 shell companies without any specific definition in law. Blinkers on only when it comes to Adani group family shells in Mauritius!," she tweeted. 

The comment came hours after she said that the Narendra Modi-led government at the Centre won't be able to take any action against Adani Group as the finance ministry allegedly does not know the definition of shell firms.

Citing a written reply from the Union Finance Ministry to the Rajya Sabha that said "details regarding offshore shell companies owned by Indian citizens is not available", the TMC MP said, "written answer in RS says no clue hence no action."

"How can government take action against Adani? Finance Ministry does not know definition of shell firm! Written answer in RS says no clue hence no action," she tweeted tagging Ministry of Finance, Nirmala Sitharaman, and Sebi.

Last week, Minister of State for Finance, Pankaj Chaudhary told Rajya Sabha in a written reply that data or details regarding offshore shell companies owned by Indian citizens are not available and an offshore shell company is not defined in the Acts administered by the Ministry of Finance.

He was replying to a question by Communist Party of India (Marxist) MP John Brittas on the details of offshore shell companies whose Ultimate Beneficial Ownership (UBO) is held by Indian citizens, and the action taken by the government.

The Minister, however, added that the government has undertaken a few exchange of information mechanisms for administration of taxation and enforcement laws for various purposes which may include offshore companies.

The minister also said that “the Directorate of Enforcement takes necessary action as per the provisions of the relevant Acts whenever there is any contravention under Foreign Exchange Management Act (FEMA), and an offense under Prevention of Money Laundering Act (PMLA), or a warrant of arrest is issued by the Magistrate or Court after taking cognizance of any offense appended to  Fugitive Economic Offenders Act, 2018 (FEOA) and where the amount involved is Rs 100 crores or above, provided the accused has gone outside India.”

Mahua Moitra is among the several opposition leaders who have been relentless in attacks on the government ever since US short-selling firm Hindenburg Research accused the Adani Group of engaging in "brazen stock manipulation and accounting fraud" and use of offshore shell companies to inflate stock prices.

Earlier, Moitra asked market regulator Sebi, Enforcement Directorate, Income Tax Department if they will be investigating Hindenburg-hit Adani Group's alleged reliance on offshore funding or not.

UK's Financial Times reported that almost half of conglomerate’s $5.7 billion in FDI over five years came from opaque overseas entities.

"A Financial Times analysis of India’s FDI remittance statistics shows offshore companies linked to the Adanis invested at least $2.6 billion in the group between 2017 and 2022, 45.4 per cent of the more than $5.7 billion it received in total FDI over the period," the report said.

The biggest investments came from two companies directly or indirectly linked to Vinod Adani, Adani Group chairman Gautam Adani's elder brother, who is listed in stock exchange filings as a Cypriot national and lives in Dubai.

Emerging Market Investment DMCC, which states on its website that it only invests Vinod Adani’s funds, ploughed $631 million into Adani companies between 2017 and 2018. Meanwhile, Mauritius-registered Gardenia Trade and Investment, which invested $782 million into Adani companies between 2021 and 2022, is directed by Emerging Market’s manager Subir Mittra, the report said.

Also Read: Parliament logjam: Congress MPs serve suspension of business notices demanding JPC on Adani Group saga

Also Read: Adani-Hindenburg crisis: 'Government hasn’t intervened in this matter,' says Sanjeev Sanyal

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