Only JPC probe into Adani issue will reveal full truth of the 'Modani scam': Congress

The Congress on Thursday (May 18) said only a Joint Parliamentary Committee probe into the Adani issue will reveal “the full truth of the Modani scam”.

Senior leader Jairam Ramesh, in a tweet, cited a news report that has alleged a “cover up”.

The Congress has been alleging that the money of LIC policyholders has been invested in the Adani Group. It has also claimed that LIC share prices have declined drastically since the Hindenburg Research report, which alleged stock price manipulation by the Adani Group, came out.

The Adani Group has denied the allegations.

Jairam Ramesh cites news report that exposes the ‘Modani cover-up’

Sharing the link to a news report on Twitter, Ramesh said it is an “expose of the anatomy of a Modani cover-up”.

Citing the report, he said, “Hire a tiny accounting firm to audit gigantic companies. Get auditors to make identical qualified opinions, the minimum needed to comply with the law, without saying why or how it affects investors.”

Also read: Why can’t govt set up JPC on Adani issue, asks Congress

“Claim an independent review has been done by an unnamed law firm but without disclosing any details. Avoid a forensic audit at all costs that could expose what actually happened. No one is any wiser as to how you used related-party transactions to launder money and inflate earnings,” continued Ramesh.

“This is why we need a JPC. Everything will be investigated, the full truth of the Modani scam will be revealed,” Ramesh added.

https://t.co/qASmEm5eaihttps://t.co/umQmRxeEiV (alas paywalled) today has an expose of the anatomy of a Modani cover-up:

– Hire a tiny accounting firm to audit gigantic companies.
– Get auditors to make identical “qualified opinions”, the minimum needed to comply with the law,…

— Jairam Ramesh (@Jairam_Ramesh) May 18, 2023

The Congress has been demanding a Joint Parliamentary Committee (JPC) probe into the Adani issue and even stalled proceedings in both Houses of Parliament during the Budget Session.

’35 % decline in LIC’s market capitalisation since listing last year’

On Wednesday (May 17), Ramesh had expressed concern over the 35 per cent decline in the market capitalisation of LIC and blamed “Modani” for the steep decline.

Also read: Opposition parties seek JPC or SC-monitored probe into Adani Group issue

“Exactly a year ago today, LIC was listed in the stock market. Its market capitalisation then stood at Rs 5.48 lakh crore. Today, this is down to Rs 3.59 lakh crore – a fall of a whopping 35 per cent,” the AICC general secretary said on Twitter.

“There is only one reason for this steep fall – Modani,” he added.

Exactly a year ago today, LIC was listed in the stock market. Its market capitalisation then stood at Rs 5.48 lakh crore. Today, this is down to Rs 3.59 lakh crore—a fall of a whopping 35%!

There is only one reason for this steep fall—Modani.

In the process, lakhs and lakhs… pic.twitter.com/zr8fAxRg9t

— Jairam Ramesh (@Jairam_Ramesh) May 17, 2023

The senior Congress leader further alleged, “In the process, lakhs and lakhs of policyholders have taken a serious hit.”

(With agency inputs)