The Maharashtra Congress requested the state authorities to take again the Dharavi redevelopment venture from Adani Group, warning that the agency might meet the identical destiny because the Sahara Group.
Maharashtra Congress chief Nana Patole (proper) has demanded that an SIT needs to be fashioned to analyze the alleged fraud within the Gautam Adani’s (left) corporations.
By Pankaj Upadhyay: Days after a US-based analysis agency accused Adani group of corporations of inventory manipulation and accounting fraud, the Maharashtra Congress requested the state authorities to take again the Dharavi redevelopment venture from Adani Group, warning that the agency might meet the identical destiny because the Sahara Group.
Maharashtra Congress chief Nana Patole has demanded that not solely ought to a Particular Investigation Staff (SIT) be fashioned to analyze the alleged fraud within the Adani Group of corporations, however even the redevelopment of Dharavi in Mumbai — Asia’s largest slum — needs to be taken away from the agency.
Additionally Learn | How Gautam Adani is betting on India’s future
Nana Patole additionally hit out at Prime Minister Narendra Modi and alleged that favours given to enterprise tycoon Gautam Adani have now sparked fears that crores of rupees invested by frequent individuals might go to waste.
“The whole world knows the deep relationship between Prime Minister Narendra Modi and industrialist Gautam Adani. Without a second thought, Modi invested the money of many public sector companies…in the companies of his industrialist friends. This way, PM Modi has put thousands of crores of rupees in jeopardy,” stated Patole.
DHARAVI REDEVELOPMENT PROJECT
The Adani Group was awarded the Dharavi Redevelopment Project after it emerged as the very best bidder for the biggest slum in Mumbai spanning over 259 hectares.
The Adani Group quoted a bid of Rs 5,069 crore for the redevelopment of one of the largest slum sprawls in the world, outbidding DLF, which had quoted Rs 2,025 crore.
The bid is for your complete Rs 20,000-crore venture. The full timeline to rehabilitate 6.5 lakh slum dwellers, who’re unfold over 2.5sqkm space, is seven years.
BLOODBATH FOR ADANI STOCKS AFTER US REPORT
Throughout the buying and selling session on Wednesday, January 25, shares of seven listed Adani Group corporations — Adani Whole Gasoline, Adani Enterprises, Adani Transmission, Adani Inexperienced Vitality, Adani Ports, Adani Energy and Adani Wilmar — registered a downfall between 1-9 per cent after a report ready by US-based investor analysis and activist short-seller agency, Hindenburg Research, accused the agency of fraud.
The report sparked fears to the purpose that there was panic promoting by home traders that led to a cumulative market cap erosion of almost Rs 1 lakh crore on the finish of Wednesday’s buying and selling session.
Additionally Learn | Adani Group shares fall after Hindenburg report. Here’s what analysts say
The report, launched on January 24 claiming to have carried out an investigation spanning over two years, advised that Adani Group was “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades.”
Hindenburg stated corporations beneath the Gautam Adani-owned conglomerate “have taken on substantial debt, including pledging shares of their inflated stock for loans, putting the entire group on precarious financial footing”.
The report additionally stated that Adani Group’s seven key listed corporations have an “85 per cent downside purely on a fundamental basis owing to sky-high valuations”.
The Adani Group had released an official statement to garbage allegations levelled by Hindenburg Analysis in its report. The group additionally questioned the timing of the report, launched days earlier than the Adani Enterprises FPO.
Additionally Learn | Deeply disturbed: Adani Group evaluates legal action against Hindenburg Research over ‘malicious’ report
“The timing of the report’s publication clearly betrays a brazen, mala fide intention to undermine the Adani Group’s repute with the principal goal of damaging the upcoming Observe-on Public Providing from Adani Enterprises,” Adani Group’s chief monetary officer Jugeshinder Singh had stated. The follow-on public provide (FPO) of Adani Enterprises Restricted opened for subscription on Friday.
The Sahara Group had raised cash from almost 30 million traders in an unlawful method by means of issuing Optionally Totally Convertible Debentures (OFCD). Nonetheless, it didn’t inform the Securities Trade Board of India (Sebi) — the regulatory physique earlier than which all disclosures must be made if an organization is searching for cash from greater than 50 individuals.
The incident got here to the fore when Sahara Group determined to boost cash from the share market. It needed to file a Crimson Herring Prospectus–which comprises the working and financials of the group’s corporations. It’s whereas analyzing this prospectus that the Sebi discovered Sahara Group had raised cash in an unlawful method by means of issuing OFCDs with out being knowledgeable about it.
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