Adani Group in spotlight again — Lok Sabha MP Mahua Moitra says delisting of Adani Power needs to be ‘looked into’

• Mahua Moitra, Lok Sabha member from West Bengal, has written to the finance minister asking to investigate Adani group companies on foreign portfolio investments (FPIs) owning a substantial interest in these companies.
• At the same time, shares of most Adani group companies were trading lower on July 26.
• Recently the company released a statement saying they have been very transparent with regulators.

Amid reports of an ongoing investigation into Adani Group companies, Mahua Moitra, a Lok Sabha member from West Bengal has written to India’s Finance Minister Nirmala Sitharaman asking to investigate Adani group companies on foreign portfolio investments (FPIs) owning a substantial interest in these companies.

On July 19, Pankaj Chaudhary, Minister of State (MoS) for finance told India’s parliament that the country’s market regulator and customs authorities are investigating some Adani Group companies for non-compliance of rules.

Shares of Adani group companies—Adani Enterprises, Adani Ports and Special Economic Zones, Adani Green Energy, Adani Power and Adani Transmission were trading 0.5-.3% lower at 12:39 p.m., on July 26.

Mahua Moitra took to Twitter to share the letter she wrote to finance minister Nirmala Sithraman saying, “written again to Hon’ble FM, RBI, CBDT, ED, DRI et all [sic] demanding urgent investigation into over-invoicing by Adani companies, round tripping of funds & dodgy FPI investments.”

Apparently, this is the second letter she has written after one previous letter on July 21.

In the letter she said that, “While this information may already be known to officials, I believe that it is important that [the] nation knows the truth behind many of these allegations as the Group is being handed several strategic assets of the nation. By its own admission the group will control 40% of air, sea and logistics infrastructure soon… Further, it seems that delisting of Adani Power in order to hide this fraud needs to be seriously looked into given allegations that have come to the fore.”

To clear air around the matter, the company had released a statement on July 19 saying, “We have always been transparent with all our regulators and have full faith in them... Adani Group is a responsible corporate citizen and strongly believes in compliance of applicable laws and adheres to prudent corporate governance framework.”

SEE ALSO: The Chinese government believes online education is bad for students, parents and the society

YES Bank shares surge 5% as investors see a ray of hope after bank reported four fold growth in profit