'Crony Capitalism at its finest': How opposition reacted to Hindenburg allegations against Sebi chief, Adani

After Hindenburg Research accused Sebi chairperson Madhabi Puri Buch and her husband Dhaval Buch of holding stakes in offshore entities linked to the Adani Group's alleged financial misconduct, opposition leaders from the INDIA bloc have reacted sharply against the Gautam Adani-led conglomerate.

Hindenburg, which cited whistleblower documents, said Buch and her husband held stakes in an offshore fund where the associates of Gautam Adani's brother Vinod Adani invested substantial amount of money.

Congress General Secretary Jairam Ramesh took a dig at Madhabi Buch, posting the Latin phrase 'Qusi Custodiet Ipsos Custodes' which translates to 'Who will guard the guards themselves'. He also pointed out that the market watchdog Sebi's "strange" reluctance to probe the "Adani MegaScam" has been long noted. 

He added that the Supreme Court's expert panel had said that Sebi in its reports in 2018 and 2019 diluted and scrapped the reporting requirements over ultimate beneficial ownership of foreign funds.

He said the latest allegations raise questions about the two meetings between Adani and Buch immediately after she was appointed the Sebi chief in 2022.

In another post, Ramesh said questioned the adjournment of the Parliament session on August 9 afternoon as it was scheduled to continue till August 12 evening. "Now we know why," he said.

Shiv Sena (UBT) leader Priyanka Chaturvedi said now it is clear why Sebi did not answer or acknowledge her letters seeking details of Adani Group, adding that the question is who will probe the allegations. "The way the Parliament session was concluded...there is a sense that something is wrong," she said.

Trinamool Congress MP Mahua Moitra slammed both Adani and Buch, saying, "Crony Capitalism at its finest." She tagged the official accounts of the CBI and the Enforcement Directorate, asking whether they will register cases under Prevention of Corruption Act and Prevention of Money Laundering Act. "In true Adani style - even SEBI Chairman is investor in his group," she added in the post.

In a joint statement, the Sebi chief and her husband denied the allegations levelled by Hindenburg, saying "our life and finances are an open book."

Hindenburg's latest allegations come after Sebi sent a showcause notice to the New York short seller over violation of the country's rules.