Cover up in making, alleges Congress on SEBI-Adani settlement

The Congress on Wednesday accused the government of orchestrating a "cover-up" following reports that Adani Group entities had sought a settlement with the Securities and Exchange Board of India (SEBI) over allegations of violating public shareholding norms.

The principal Opposition party called for stringent punitive measures, including arrests and raids, to address what it termed the "Adani mega scam".

Congress MP and general-secretary (communication) Jairam Ramesh led the charge, claiming that a token settlement would damage the credibility of Indian regulatory institutions.

“A settlement of this nature would make Indian institutions a global laughing stock, further tarnished by the actions of Prime Minister Narendra Modi and his cronies,” Ramesh said in a statement.

Ramesh added that entities linked to the Adani Group — Adani Enterprises, Adani Power, Adani Energy Solutions, and Adani Ports and SEZ — allegedly manipulated public shareholding norms through opaque offshore funds.

“Reports that offshore entities tied to the Adani Group are seeking a token settlement for severe securities law breaches highlight a brazen attempt at a cover-up,” Ramesh said.

The Congress also raised concerns about SEBI chairperson Madhabi Puri Buch, accusing her of conflicts of interest. “She has allegedly invested in the same offshore funds accused of facilitating benami investments to inflate Adani Group share prices,” Ramesh said. “Instead of facing accountability, she now appears poised to settle with those she has been protecting.”

In addition to public shareholding violations, Ramesh alleged that funds were laundered through over-invoicing coal and power equipment imports. He named Adani-linked intermediaries Chang Chung-Ling and Nasser Ali Shaban Ahli, accusing them of building benami stakes of 8-14 per cent in Adani firms using shell companies based in Mauritius, the UAE, and the British Virgin Islands.

The Congress also highlighted allegations from the US Department of Justice that Adani Group executives, including founder Gautam Adani and his nephew Sagar Adani, paid $265 million in bribes to Indian officials to secure lucrative solar energy contracts. The Adani Group has denied these allegations as “baseless”.

The Congress reiterated its call for a joint parliamentary committee (JPC) to investigate the Adani affair comprehensively. “This is not just about financial irregularities but also about the nexus between the government and its corporate allies. Arrests, raids, and accountability are essential,” Ramesh emphasised.