'Dubious, foreign entities': Rahul Gandhi slams Adani, govt; says sensitive contracts given to unknown firms

Congress MP Rahul Gandhi raised questions today about missile and radar upgrade contracts being given to an Adani Group-owned company and an unknown foreign entity known as Elara. He further asked who controls Elara and why is the Centre giving control of strategic defence equipment to unknown entities.

Gandhi tweeted, “India’s missile and radar upgrade contract is given to a company owned by Adani and a dubious foreign entity called Elara. Who controls Elara? Why is India’s national security being compromised by giving control of strategic defence equipment to unknown foreign entities?”

Gandhi, via his Twitter handle, shared a screenshot of a news report by The Indian Express. The newspaper today ran a story which claimed that Elara India Opportunities Fund or Elara IOF is one of the top four shareholders in the Adani Group companies. Elara IOF is a venture capital fund managed by Elara Capital. The Indian Express report further claimed that Elara Capital is a joint owner in a top defence firm controlled by the Adani Group.

It also mentioned that Elara IOF is also a promoter in a Bengaluru-based defence firm Alpha Design Technologies Private Limited (ADTPL), along with Adani Group. ADTPL was founded in 2003 and works closely with Indian Space Research Organisation (ISRO) and Defence Research and Development Organisation (DRDO). It has signed a contract worth Rs 590 crore with the Defence Ministry in 2020 for upgrading and digitising the Pechora missile and radar systems.

Rajya Sabha MP from Shiv Sena’s Uddhav Balasaheb Thackeray faction Priyanka Chaturvedi too took to Twitter to condemn the government and called this revelation an “Amazing coincidence.” Chaturvedi wrote, "This is in India’s Defence space, a key investor in Adani Group, Mauritius based Elara IOF, with 96 per cent of its corpus invested in the group till Dec,’22 is also co-owner in a Defence company, the firm works closely with ISRO and DRDO, both jointly hold over 51% stake. Amazing coincidence!"

They joined Trinamool Congress (TMC) MP Mahua Moitra in questioning the government on granting strategic defence contracts to unknown entities. She, earlier today, had tagged DRDO and the Ministry of Home Affairs Spokesperson on Twitter and wrote, "The “Chhupa  Rustom” category award at the Oscars goes to @DRDO_India and @PIBHomeAffairs. Happy to have unknown foreign funds controlling sensitive defense contracts! Only for their best friend Mr Adani. #BJP4Oscars."

These accusations from the Opposition come in the wake of the Adani Group was accused of brazen accounting fraud and stock manipulation by the US-based short seller Hindenburg Research in a damning report. The report prompted the Supreme Court to institute a panel in the case and also asked the market regulator Securities and Exchange Board of India (SEBI) to investigate the allegations further.

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