Will Indian government confiscate the passport of Adani, considering Neerav Modi, Lalit Modi and Vijay Mallya absconded at the smell of inquiry!
The Hindenburg report has reported Adani’s malpractices. While the Indian government has not spoken much about the matter, the opposition has condemned the act stating that Adani’s passport should be confiscated.
The leaders of the opposition Party stated that on February 2, the Hindenburg report against Adani should be discussed. Thus, a Joint Parliamentary Committee should be established to discuss the fraudulent activities which were taking place under the mask of the wealthiest man in Asia.
Many opposition parties have taken over to condemn the act, where Aam Aadmi Party MP Sanjay Singh has stated that Adani’s meteoric rise in wealth has been built on mountains of lies and frauds. The Prime Minister should immediately take action. The incident has brought disgrace. Furthermore, it has questioned the quality of Indian institutions.
Adani’s fall in the valuation of the stocks has burdened most of the investors because they have taken loans to pay for the crashes in SBI and LIC.
They have addressed the issue. He has pointed out that the Prime Minister should address the public about the matter. The Finance ministry should tell what the investigation bureaus doing when all the malpractices were happening under their nose were.
The Indian government should finally ‘bite the bullet’ regarding Adani:
One of the integral measures to prevent Adani from absconding is to confiscate his passport. They must pay attention to the issue. If Adani flees the country, it would mean losses for the investors.
The short-seller has taken a severe toll on his business. Once he was ranked the wealthiest man in the world, his value dropped to No. 21 on the Bloomberg Billionaires Index.
Eight of the ten worst-performing stocks are Adani’s Enterprises. The distress has affected the group and hit banks that have given loans to the companies to continue their operations. State Bank of India has gone down by 11 percent since the Hindenburg report came out.
It could take a massive impact on the Indian market. The Adani-related headlines generated massive negative attention, which caused foreign investors to be interested in Indian stocks. Investors have suffered losses from the crash in stock prices. The group’s market cap has halved and slumped below 10 lakh crore INR.
Thus, Adani’s passport should be confiscated so that he can not abscond and fraud the investors.
His firms were reportedly suspended on the Bombay Stock Exchange. Many stocks have fallen by 30 percent by visualizing paring losses. Many of his stakes, including Adani Power, Adani Green Energy, and Adani Total Gas, were suspended when they fell beyond their limits.
India can’t let history repeat itself. India can not see the same that happened for Vijay Mallya, Nirav Modi, Mehul Choski, and many other businessmen. They have absconded abroad after they were involved in the default of loans and scams.
Furthermore, the Indian Government laid down a bill called the Fugitive Economic Offenders bill in 2018 in the parliament. The bill reflects on measures to prevent the fugitives from fleeing the countries to defy the process of Indian law. In addition, the bill provides confiscation of the fugitive or the economic offender to make him submit to the jurisdiction in the court of law.
Adani’s loss has not just questioned the foundations of the company but rekindled old doubts about India’s governance:
Now is not the time for India to be shaken, specifically at a time when the Chinese markets are opening, and competition among the rivals is at its peak when prominent firms like Apple are starting to establish their production units in India.
His haven of tax evasion has shaken investors’ faith in India, and most importantly, it has questioned the regulatory activities of the strongest framework of the country: SEBI.
If the crash in his asset prices continues, it will threaten the growth of the country in a prime time.
Wrap Up:
It is not the time for the Adani group to create trouble for India. The Indian Government should break their silence and confiscate his passport to let history from repeating itself. We can not let Gautam Adani turn into another Vijay Mallya or Nirav Modi because there is more to lose for the Indians on the other side of the coin.
Edited by Prakriti Arora
