Adani Row: Government Disagrees With SEBI, Confirms Its Stand On 2021 Reply In Parliament

The finance ministry has confirmed that it stands by its earlier statement made in July 2021 during a parliamentary session that confirmed the Securities and Exchange Board of India (SEBI) was conducting investigations on several companies within the Adani group.

This affirmation came after SEBI submitted a new affidavit to the Supreme Court seeking a six-month extension to investigate allegations of fraud and money laundering against the Adani Group. In response, opposition parties, including the Congress, questioned who was providing misleading information by citing the finance ministry's earlier response, PTI reported.

"The government stands by its reply in Lok Sabha on 19th July 2021 to Q. No. 72, which was based on due diligence and inputs from all concerned agencies," the finance ministry tweeted.

In response, the Minister stated that "SEBI is investigating some Adani Group companies with regard to compliance with SEBI regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group of companies under laws administered by it".

The Supreme Court had instructed SEBI to wrap up its investigation into the Adani Group in two months in response to petitions calling for an investigation into the claims. Early this month, the deadline expired, and SEBI requested an additional six months to finish the investigation.

The SEBI claimed on Monday that the claims that it "has been investigating Adani since 2016 is factually baseless" in a new document.

SEBI stated in a new affidavit that the purpose of the application for an extension of time is to ensure the delivery of justice while keeping the interests of investors and the securities market in mind. SEBI emphasized that reaching an incorrect or premature conclusion without considering all relevant facts on record would not serve the objective of justice and would be legally unsustainable. Furthermore, SEBI clarified that the "investigation" mentioned in its previous affidavit is not associated with the issues arising from the Hindenburg report.

"The matter referred to in paragraph 5 pertains to the issuance of Global Depository Receipts (GDRs) by 51 Indian listed companies in respect of which investigation was conducted. However, no listed company of the Adani group was part of the aforesaid 51 companies. Pursuant to the completion of the investigation, appropriate actions were taken in this matter."

The claim that the SEBI has been looking into the Adani group since 2016 was described as "factually baseless" and it added, "I, therefore, say and submit that reliance sought to be placed on the investigation pertaining to GDRs is wholly misplaced."