JPC imperative to probe 'massive scandal', says Mallikarjun Kharge over Hindenburg allegations

Mallikarjun Kharge/ File Photo

Following claims by US short-seller Hindenburg Research against SEBI chairperson Madhabi Buch, Congress President Mallikarjun Kharge has demanded a Joint Parliamentary Committee (JPC) investigation into what he calls a "massive scandal."

Kharge expressed concern that unless a JPC probe is undertaken, there will be continuous concerns that Prime Minister Narendra Modi will continue to "shield his ally," thereby compromising India's constitutional institutions that have been diligently created over the last seven decades, reported PTI.

According to the report, the Congress party has urged the government to act quickly to eliminate any conflicts of interest in SEBI's Adani Group investigation, and it has reaffirmed its call for a JPC review into the situation.

In a post on X (formerly Twitter), Kharge wrote, "SEBI had previously cleared Adani, a close associate of PM Modi, before the Supreme Court following the January 2023 Hindenburg Report revelations. However, new allegations have surfaced regarding a quid-pro-quo involving the SEBI Chief."

He emphasised the necessity of protecting small and medium-sized investors, who rely on SEBI to preserve their interests. Kharge, in his tweet, wrote, "The small & medium investors belonging to the Middle Class who invest their hard-earned money in the stock market need to be protected, as they believe in the SEBI."

Kharge argued that a JPC inquiry is required to adequately investigate this; he said, "A Joint Parliamentary Committee (JPC) inquiry is imperative to investigate this massive scandal. Until then, concerns persist that PM Modi will continue to shield his ally, compromising India's Constitutional institutions, painstakingly built over seven decades."

Hindenburg Research recently accused SEBI chairperson Madhabi Buch and her husband of owning holdings in mysterious offshore funds tied to the Adani Group's alleged money laundering activities. Hindenburg slammed SEBI in a blog post for demonstrating "a surprising lack of interest" in probing Adani's concealed web of offshore businesses, even though their original report on the company was issued 18 months ago.

Buch and her husband have flatly disputed the charges, calling them unfounded, and claimed that their finances are completely transparent. The Adani Group also denounced Hindenburg's latest allegations as spiteful and deceitful, claiming that it had no commercial contact with the SEBI chairman or her husband.