Congress-BJP war of words over Hindenburg allegations intensifies

New Delhi: The war of words over latest Hindenburg report on Sebi head Madhuri Buch intensified on Monday with the Congress alleging that the market regulator is projecting an “image of hyperactivity” to hide its role while the BJP is claiming that the US short-seller was funded by investor George Soros who wants to oust Narendra Modi government.

Congress demanded that the Supreme Court must transfer the investigation to the CBI or a Special Investigation Team “given the likelihood of Sebi’s compromise” while the BJP alleged that Congress’ has a “pathological hatred” towards the prime minister and is using the report to ensure a stock market crash.

Senior BJP leader Ravi Shankar Prasad alleged that the Congress wants to spread anarchy. “He (Soros) routinely runs propaganda against India. He says India is not a democracy, India is not safe. Now he wants the Modi government to be removed. He is the main investor in Hindenburg. But the question is to the Congress party. What do you want?” he said.

He also alleged that the Hindenburg report against Sebi was released on Saturday, so that it leads to a market crash on Monday.

“When Sebi issued a notice against Hindenburg, after completing its entire inquiry in July, which was done under the supervision of the Supreme Court, then without giving any answer in favour of its defence, they have made this attack which is completely baseless,” he said.

Rejecting the Sebi statement defending its action on Adani Group and giving a clean chit to its chief Madhuri Buch, Congress General Secretary Jairam Ramesh also reiterated the party’s demand for Buch’s resignation and a probe by the Joint Parliamentary Committee. “At a minimum, the Sebi Chairperson must resign to restore Sebi’s integrity,” he said.

He said the Sebi response on the ongoing probe into Adani Group has “sought to project an image of hyperactivity” by referring to issuance of 100 summons, 1,100 letters and emails and examining d0cuments running into 12,000 pages. “This must have been very exhausting, but it diverts attention from the core issues involved. Actions matter, not activities,” he said.

In a statement, he said the “illusion” that the Sebi Chairperson and her husband had separated their finances has been “shattered by the revelation” that after joining Sebi, she transacted in the fund from her personal email account on 25 February, 2018.

“Did the Sebi Chairperson recuse herself from the Adani investigations? Do these conflicts of interest explain the prolonged investigation, a delay that has benefited both Adani and the Prime Minister while damaging SEBI’s reputation? How can a match proceed if the umpire herself is compromised?” Ramesh said.

On SC’s March 2023 order to investigate the allegations of stock manipulation by Adani Group, he said the Sebi investigation remains incomplete. The fact is that the Sebi’s seeming inability to close two of its 24 investigations against Adani Group has delayed the publication of its findings for over a year, he said.

This “delay conveniently” allowed Prime Minister Narendra Modi to navigate an entire general election without addressing his role in facilitating his “close friend’s illicit activities”, he alleged.