On Monday, a large number of India’s party leaders gathered on the streets to demand an investigation into the charges made by a US short-seller against the conglomerate that caused its stock market to crash. This escalated the crisis surrounding the Adani Group.
Related Post: Indian Economy is Going Through a Bigger Test – The Adani Turmoil
Since a negative study by Hindenberg Research was released on January 24, shares of the billionaire Gautam Adani’s enterprises have been falling precipitously, and the group’s total market losses have surpassed $110 billion, raising concerns about broader financial contagion.
Opposition parties have challenged Indian Prime Minister Narendra Modi’s relationship with Adani after they interrupted sessions last week and that a legislative panel looks into the scandal.
On Monday, protesters also voiced their displeasure about state-backed Life Insurance Corporation (LIC) and State Bank of India (SBI) interests in the Adani Group.
In-depth responses to the Hindenberg report’s accusations of insider trading, use of tax shelters, and debt sustainability concerns have been provided by Adani.
Adani Refutes the Claims About the Any Deep Connections with the Modi Government.
Despite the fact that the billionaire and Modi both hail from the same state, Adani has consistently refuted claims by Modi’s detractors that he benefitted from their close connections. The Modi administration has also refuted claims that it has favored Adani.
Protesters put up signs and chanted anti-Adani chants at New Delhi’s Jantar Mantar, a Mughal-era observatory that serves as a rallying point for many causes. Some managed to get past the barriers, which compelled the police to hold them.
“The government is attempting to safeguard Gautam Adani since the common person invested his cash in his enterprise. The businessman (Adani) is receiving backing from the state, not the average citizen “Shiv Panday, the secretary general of the Uttar Pradesh Congress Committee, was cited by the media organization ANI.
Also Read: What Is The Significance Of Proof-of-stake Crypto Projects?
Numerous offices of the state-owned insurer Life Insurance Corporation (LIC) and State Bank of India (SBI), both of whom have exposures to Adani group enterprises, were the target of protests by dozens of members of the Congress party throughout the nation.
Someone set luggage with the SBI emblem on fire in Jantar Mantar. Adani’s image and the LIC emblem were shown on a protester’s poster in Mumbai, which also included a bar chart showing how much money LIC had spent in the Adani Group.
Bottom Line – Worsening and Increasing Crisis
For Adani, 60, whose riches had recently increased as he extended his conglomerate’s commercial activities, which range from ports to mining, the situation has spiraled out of control into the largest company and reputational problem.
For the third day in a row, the Indian parliament’s two houses were postponed on Monday amid protests and calls for an investigation.
Also Read: 5 Ways A Busy Mom Can Support Her Kids With Their Schooling
Adani Enterprises Ltd., the flagship firm of the Adani group, was compelled to forgo a $2.5 billion share sale this past week as a result of Hindenburg’s report, and Adani lost his title as Asia’s wealthiest person and fell in the world’s wealthiest rankings.
According to Reuters, Adani had intended to release a credit report by Friday to allay worries raised by Hindenburg on its solvency. The report is anticipated to be made public this week, according to a source with firsthand knowledge of the situation.