'Adani scam' exposed role of tax havens in hiding violation of Indian regulations: Congress

Jairam Ramesh. File Pic

The Congress on Thursday alleged that the "Adani scam" has exposed the role tax havens play in hiding large-scale violation of Indian laws, and said the issue should have discussed at the recent G20 Summit.

It also said that if a Joint Parliamentary Committee (JPC) probe is ordered into the allegations against the Adani Group, it will have to make sure that any loopholes for round-tripping and money-laundering are effectively shut.

In a post on X, Congress general secretary Jairam Ramesh said the rise in Indian outward direct investment in the past 25 years has been a sign of deepening globalisation.

"However, it is disturbing that offshore tax havens like Bermuda, Jersey and Cyprus rank among the top 10 destinations for Indian investment, according to the RBI," he said.

This is in addition to Mauritius that has long been suspected as a preferred destination for Indian money-laundering and round-tripping, the Congress leader noted.

"The Adani Scam has exposed the critical role such tax havens play in hiding the large-scale violation of Indian laws and regulations. These violations are hollowing out our economy and affecting the credibility of our stock markets," Jairam Ramesh said.

"The G20 was the right forum to take up this issue and ensure concrete action against tax havens. But the Prime Minister was busy projecting his own image rather than protecting India's interests," he claimed.

"A JPC into the Adani Scam will have to make sure that any remaining loopholes for round-tripping and money-laundering are effectively shut," the Congress leader said.

The Congress and other opposition parties have been demanding a JPC probe into the Adani issue and will take up the issue during the upcoming special session of Parliament from September 18 to 22.

US short-seller Hindenburg Research, in a report released on January 24, alleged accounting fraud, stock price manipulation and use of tax havens by the Adani Group, triggering a stock market rout.

The Adani Group has denied all allegations by Hindenburg.

Meanwhile, the Congress on Wednesday said the agenda for the upcoming session of Parliament as published at the moment is "much ado about nothing" but expressed apprehensions that the government is keeping "legislative grenades" up its sleeves to be unleashed at the last moment.

In a post on X, Congress general secretary Jairam Ramesh said, "Finally, after pressure from Smt. Sonia Gandhi's letter to the Prime Minister, the Modi Govt has condescended to announce the agenda for the special 5-day session of Parliament beginning September 18th."

"The agenda as published at the moment, is much ado about nothing ¿ all this could have waited till Winter session in November. I am sure the legislative grenades are being kept up their sleeves to be unleashed at the last moment as usual. Parde ke peeche kuch aur hai!" he said.

Regardless, the INDIA alliance parties will steadfastly oppose the "insidious" CEC Bill, Ramesh added.

The government on Wednesday listed a special discussion on Parliament's journey of 75 years, starting from the Samvidhan Sabha, on the first day of the five-day session of Parliament beginning September 18.

During the session, the government has also listed the bill on the appointment of the Chief Election Commissioner and other election commissioners to be taken up for consideration and passage. The bill was introduced in Rajya Sabha during the last Monsoon session.

(With inputs from PTI)