Adani Row: Congress Says Govt Can’t Hide ‘India’s Biggest Scam

Introduction

The Indian National Congress has intensified its criticism of the Modi government over the Adani Group’s alleged financial irregularities. Labeling it as “India’s biggest scam,” the Congress asserts that the government’s attempts to shield the conglomerate from scrutiny undermine democratic accountability. This article delves into the allegations, the government’s response, and the broader implications for India’s political and economic landscape.

Allegations Against the Adani Group

U.S. Bribery Charges

In November 2024, U.S. prosecutors charged Gautam Adani and key executives with securities fraud and conspiracy. The indictment alleges a $265 million bribery scheme to secure solar energy contracts in India, misleading investors about the integrity of Adani Green Energy Ltd. These charges have led to significant stock declines for the Adani Group and heightened international scrutiny.

SEBI Settlement Controversy

Reports indicate that two offshore funds heavily invested in Adani companies sought to settle with the Securities and Exchange Board of India (SEBI) without admitting guilt. The Congress criticizes this approach as a convenient escape for the Adani Group, undermining regulatory accountability.

Congress’s Demands for Transparency

Call for Joint Parliamentary Committee (JPC) Probe

The Congress has consistently demanded a JPC investigation into the Adani Group’s dealings, emphasizing the need for an impartial inquiry to uphold democratic principles and investor confidence.

Opposition to Government’s Alleged Favoritism

Congress leaders accuse the Modi government of favoring the Adani Group through policy decisions and disinvestment strategies, particularly in resource-rich regions like Bastar. They argue that such actions prioritize corporate interests over public welfare.

Government’s Response

The Modi government denies any wrongdoing, asserting that all dealings with the Adani Group are transparent and lawful. Home Minister Amit Shah has stated that the government has “nothing to hide,” dismissing the Congress’s allegations as politically motivated.

Broader Implications

Economic Impact

The controversy has led to a significant loss in market value for the Adani Group, affecting investor sentiment and raising concerns about corporate governance in India.

International Repercussions

Global partners, including TotalEnergies, have suspended investments in Adani ventures pending clarity on the allegations, indicating potential long-term effects on foreign investment in India.