Led by billionaire Gautam Adani, the trading house’s seven listed companies bearing his name have together lost nearly $120 billion in market value since a January 24 report by Hindenburg Research found improper use of offshore tax havens and stock manipulation. has been accused of. The Adani Group has denied the allegations and threatened legal action against Hindenburg.
“The Supreme Court has taken cognizance of the matter. As a minister, it is not right for me to comment if the Supreme Court takes up the matter,” Amit Shah, considered the most powerful politician in India after Modi, told ANI news agency.
Shah said, referring to the ruling Bharatiya Janata Party (BJP), “But there is nothing for the BJP to hide and nothing to fear.”
He denied the allegation of crony capitalism and suggested the opposition to go to court if they have proof.
The Adani crisis has stalled Parliament, triggered street protests by the opposition, probes by regulators and prompted broader markets to challenge Modi ahead of state elections due this year and general elections next year. put pressure on.
Rivals, including the main opposition Congress party, accuse Modi and the BJP of having a long association with the apples-to-airport Adani group when Modi was chief minister of the western state of Gujarat. Gautam Adani and Shah also come from this state.
However, according to the approval ratings, Modi’s immense popularity remains intact.
Without mentioning Adani, Modi told Parliament last week that “the blessings of 1.4 billion people in the country are my protective shield and you cannot destroy it with lies and abuses”, as opposition MPs chanted “Adani, Adani”. Imposed.
Shares of group flagship Adani Enterprises fell nearly 4% in early trade on Tuesday. The company, which sold a $2.5 billion share earlier this month following a stock rout, will announce quarterly results later in the day.
Adani Power and Adani Green Energy also fell in the broader Mumbai market, which was up slightly.
India’s Economic Times daily reported on Tuesday that Adani Group executives were in talks with Abu Dhabi’s International Holding Corp (IHC) since last week to infuse capital into Adani Enterprises or other group entities.
Adani and IHC did not immediately respond to requests seeking comment.
The Adani Group has hired accountancy firm Grant Thornton for an independent audit of some of its companies, Reuters reported on Monday, citing sources, even as India’s market regulator said it was probing the Hindenburg report. as well as examining market activity before and after market trading. The report was published.
(Reporting by Sudipto Ganguly; Writing by Krishna N. Das; Editing by Muralikumar Anantharaman)