Sixteen Opposition parties on Wednesday approached the Enforcement Directorate to investigate the Adani Group over allegations of corrupt practices, including money laundering, while reminding that it “cannot turn around and abdicate” its jurisdiction while it is “zealously” pursuing cases of alleged political favouritism.
In the four-page letter, the parties named industrialist Gautam Adani's brother Vinod Adani as the "person crucial" to the setting up of a network of shell companies and offshore funds to allegedly route money back to the multi-billion dollar conglomerate, "artificially inflate" stock valuations and give "distorted picture" of its financial health.
The leaders of Congress, DMK, SP, RJD, BRS, AAP, CPI(M), CPI, JD(U), Shiv Sena (Thackeray), Kerala Congress (Mani) JMM, VCK, MDMK, National Conference and Muslim League signed the joint complaint and emailed it to the ED after their attempt to march towards the agency's office were prevented by the police outside Parliament. NCP and Trinamool Congress did not sign the complaint.
The letter sought to corner the ED saying that the agency, which "claims to pursue cases with vigour and fairness" has "yet to launch even a preliminary enquiry" into the "serious charges" against the Adani Group though "several crucial pieces of evidence" have been made available.
"As a result, we are constrained to file this official complaint so that the ED is compelled to investigate a relationship that has serious implications not just for our economy but most importantly, our democracy. This case involves serious and far-reaching charges of corporate fraud, political corruption, stock-price manipulation through fraudulent means, and the misuse/monopolisation of public resources to benefit a single corporate group," it said.
"We are acutely aware of how in the recent past, the ED has also zealously pursued cases of alleged political favouritism, including sharing concurrent jurisdiction with SEBI and CBI. We are also aware of the limited remit of the Supreme Court Commission appointed on the subject. We point this out so as to remind the ED that it cannot turn around and abdicate its jurisdiction on these or other grounds. In light of the above, we, the members of the Opposition, ask that you take immediate action on the above-mentioned allegations," the letter said.
The letter claimed that data in public domain shows that 38 Mauritius-based shell entities controlled by the Group through Vinod Adani or close associates, as well as other entities in Cyprus, the UAE, Singapore, and several Caribbean islands and it was to "round trip" money into the Adani companies.
"What makes matters worse and establishes a clear causal link between these off-shore entities and Adani's Indian companies is that Gautam Adani's brother Vinod Adani, along with his associates, is alleged to be the person crucial to setting up these networks. In other words, the parent companies are not at 'arms length' from these transactions..." it said.
The leaders also mentioned the drug haul from Mundra port, run by the Adani Group, in September 2021 and alleged that there has been "absolutely no serious" investigation. "Given the cross border implications, it is even more surprising that the jurisdiction of the ED was never invoked in the investigation," the letter said.
Referring to the loans that the Adani Group has taken from various public sector banks, the letter claimed that there is "a clear pattern of corruption, cronyism and habitual law-breaking" and "it is surprising that despite all of the above, the ED has shown little to no interest in pursuing a basic investigation into the entities' affairs."
The letter also referred to the Adani Group lending "significant amounts" of money to AdiCorp, whose financials did not support the lending of such a large amount and this company allegedly funnelled the vast majority of the loaned amount to Adani Power. "This transaction alone merits serious scrutiny...," it said.
The leaders also highlighted "charges of cronyism" and referred to the awarding of Dharavi redevelopment work, power discounts in Jharkhand and change in SEZ policy to favour the Group in the setting up of a power plant.