India PM Modi under fire for Gautam Adani links, silence over fraud allegations

Congress, India’s main opposition party, staged protests to highlight the billionaire tycoon’s close links with India’s prime minister

It follows an explosive report by US-based short seller Hindenburg Research that accused Adani’s companies of fraud

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An Indian artist carries a painting of billionaire industrialist Gautam Adani, chairman of Adani Group, in Mumbai last week. Photo: EPA-EFE

Published: 2:02pm, 6 Feb 2023Updated: 6:04pm, 6 Feb 2023

India’s parliament was adjourned for a third day as the opposition sought to draw attention to what they describe as the close ties between Prime Minister Narendra Modi and billionaire Gautam Adani ahead of national elections due next year.

Adani’s companies have witnessed a stock rout after US short seller Hindenburg Research accused the conglomerate of widespread fraud and stock market manipulation. The market value of the group has almost halved since Hindenburg’s allegations, which have been repeatedly denied by them.

The main opposition Congress party staged protests on Monday in front of the offices of the Life Insurance Corporation and State Bank of India to highlight the risks to millions of small investors due to these state-owned institution’s exposure to the tycoon’s companies. Adani and Modi are believed to be close and the billionaire has often aligned his business plans with the prime minister’s growth strategy for India.

“Amid the allegations against the Adani Group, the Modi government has maintained a loud silence which smacks of collusion,” Congress general secretary Jairam Ramesh said in a statement over the weekend.

Narendra Modi in New Delhi last month. Opposition parties are trying to corner the Indian prime minister over his links to Gautam Adani. Photo: Reuters

The concerns that savings of ordinary Indians could be wiped out could carry political risk for Modi, who is looking at a third term in office. Allegations of corruption or favouritism could also hurt, but only if the opposition is able to mobilise people to the streets.

Modi, whose Bharatiya Janata Party has a comfortable majority in parliament, has survived several political pitfalls – including a 2016 decision to overnight invalidate high-value currency notes and widespread protests against a series of farm laws that his government later rolled back – since sweeping to power in 2014.

India PM Modi under fire for Gautam Adani links, silence over fraud allegations

Congress, India’s main opposition party, staged protests to highlight the billionaire tycoon’s close links with India’s prime minister It follows an explosive report by US-based short seller Hindenburg Research that accused Adani’s companies of fraud

Congress, India’s main opposition party, staged protests to highlight the billionaire tycoon’s close links with India’s prime minister

It follows an explosive report by US-based short seller Hindenburg Research that accused Adani’s companies of fraud