Hindenburg report 'only tip of iceberg', JPC probe can unravel full extent of 'Modani mega-scam', says Congress

New Delhi: Congress on Friday said the Hindenburg report is "only the tip of the iceberg" and the demand for an investigation by the Joint Parliamentary Committee (JPC) into the Adani issue goes beyond it, claiming that the "irregularities and wrongdoings" relating to the business conglomerate span every dimension of the political economy.

In a statement, party General Secretary (Communications) Jairam Ramesh said only a JPC can investigate and unravel the "true and full extent of this Modani mega-scam". He said the allegations in the Hindenburg report are limited to deal with the capital markets, including stock manipulation, accounting fraud, and conflict of interest in regulatory agencies.

"The demand for a JPC investigation into the Adani Mega Scam goes far beyond the revelations made by Hindenburg Research’s reports. Irregularities and wrongdoings relating to the Adani Group span every dimension of the political economy," he said.

The renewed push for a JPC probe by the Congress comes following the release of a report by US short-seller Hindenburg claiming that SEBI chief Madhabi Puri Buch and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.

At a meeting of senior leaders, Congress had decided to launch a nationwide agitation demanding a JPC probe into the Adani issue on August 22 by gheraoing offices of Enforcement Directorate.

Beyond the allegations in the Hindenburg report, Ramesh claimed that the irregularities pertain to several issues, including the "misuse" of India's investigative agencies to secure "Adani monopolies" in ports, airports, cement and other critical sectors.

The "extraordinary favouritism" had been shown by government banks, particularly the SBI, in providing credit to key projects, including the Adani copper plant at Mundra, the airport in Navi Mumbai, and the UP Expressway Project, he alleged.

There has been "subordination of India’s foreign policy interests" to the needs of Adani Enterprises, at the cost of India’s standing in the neighbourhood, he further claimed.

He also accused the government of handing over India's strategic relationship with Israel to a single company.

He also claimed that coal and power equipment over-invoicing, which has "not only facilitated money-laundering and abnormal profits but also raised the common citizen’s electricity bills".

Ramesh also alleged "unregulated extension" of leases over publicly-owned assets to Adani Group at throwaway prices.

"The Hindenburg allegations do not refer to any of the above. Its allegations are limited to those that deal with the capital markets - stock manipulation, accounting fraud, and conflict of interest in regulatory agencies. Hindenburg is only the tip of the iceberg," he said.