Ruckus in Parliament as Opposition demands discussion on Adani-Hindenburg row
Proceedings in the Lok Sabha and Rajya Sabha were adjourned till 2 pm on Thursday after the Opposition kicked up a storm, demanding discussion on the risk to Indian investors in view of the diminishing value of Adani Group's shares following allegations of fraud leveled by US-based Hindenburg Research. Interrupting the Question Hour, the Opposition demanded to suspend the regular operations of Parliament.
Why does this story matter?
- In the report titled 'How the world's 3rd richest man is pulling the largest con in corporate history,' Hindenburg accused Adani Group of stock manipulation and accounting fraud, among others. Following the Hindenburg report, the conglomerate's shares have fallen by roughly $100 billion.
- The government-owned Life Insurance Corporation (LIC), which had invested in Adani Group, also faced a slump in its share prices.
Here's the Opposition's notice requesting suspension of regular operations
Opposition demands JPC or CJI-appointed panel for probe
Opposition parties demanded a probe into Adani Group's alleged fraud either by a Joint Parliamentary Committee (JPC) or a panel appointed by the Chief Justice of India (CJI). The Opposition leaders met after the adjournment to jointly strategize for taking on the government since notices submitted by the Opposition are always rejected, Leader of the Opposition and Congress president, Mallikarjun Kharge said.
Adani Enterprises' shares fall by 15%
Meanwhile, the value of the shares of Adani Enterprises fell by 15% on Thursday. The Opposition leaders earlier submitted adjournment notices in both Houses stating that "a significant volume of public money through State Bank of India (SBI) and LIC is locked in the Adani Group." The notice said that the hard-earned savings of citizens were endangered due to the conglomerate losing market value.
BRS calls for 'Adani Act' to end 'crony capitalism'
The Bharat Rashtra Samithi (BRS) on Tuesday called for the introduction of "Adani Act" to end "crony capitalism." They boycotted President Draupadi Murmu's address at the beginning of the Budget Session on Tuesday to protest the BJP-led government's "failure on all fronts of governance." BRS MP Keshava Rao said there was no mention of issues such as unemployment or inflation in the President's address.