Congress Questions SEBI’s Inaction on Money Laundering Allegations Against Adani-linked Entities

Congress Questions SEBI's Inaction on Money Laundering Allegations Against Adani-linked Entities

VoM News Desk | September 16, 2023 | 10:25 AM IST | Breaking News, Politics | Follow on Google News

Congress Questions SEBI’s Inaction on Money Laundering Allegations Against Adani-linked Entities. Image/ PTI

In a recent development, the Congress party has raised questions about the Securities and Exchange Board of India (SEBI) not taking action on money laundering allegations against “Adani-linked entities.” The party has called for the formation of a joint parliamentary committee (JPC) to discuss the issue during the special session of Parliament.

SEBI’s Inaction and Credibility

Congress general secretary Jairam Ramesh expressed doubts about SEBI’s credibility as a fair regulator of capital markets in India. He wondered whether SEBI would now take action, considering that the Mauritius financial regulator had revoked the licenses of two such entities.

Mauritian Regulator’s Actions

Ramesh highlighted that the Financial Services Commission (FSC), the Mauritian equivalent of SEBI, had revoked the licenses of the controlling shareholder of two Adani-linked funds in May 2022. This action was taken based on violations of several laws, including the Financial Services Act, the Securities Act, the Financial Intelligence and Anti-Money Laundering Regulations (2003 and 2018), and the Code on the Prevention of Money Laundering and Terrorist Financing.

Allegations Against Adani-linked Entities

It is alleged that Babulal Katara leaked the paper and sold it to Anil Kumar Meena, who, through his syndicate, supplied it to candidates for Rs 8-10 lakh. Emerging India Fund Management, whose licenses were revoked on these grounds, controlled two funds that served as conduits for Vinod Adani associates Nasser Ali Shaban Ahli and Chang Chung-Ling. Ahli and Chang were accused of making dubious investments in Adani companies through these funds.

Demand for a JPC Probe

The Congress and several other opposition parties have been demanding a JPC probe into the Adani issue, claiming that only a JPC can bring out the truth in the matter. The opposition parties had earlier stalled proceedings in Parliament, demanding a discussion on the issue during the special session.

VoM News Desk

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