Adani and Modi | The full Story of Fraud Allegations by Dhruv Rathee

Adani and Modi | The full Story of Fraud Allegations by Dhruv Rathee

Adani Group, headed by billionaire Gautam Adani, is one of India's largest conglomerates with interests in ports, logistics, energy, and infrastructure. Prime Minister Narendra Modi, who was the Chief Minister of Gujarat when Adani Group began its major expansion in the state, has been accused of having close ties with the Adani family.

 

There have been several allegations of fraud and irregularities against Adani Group over the years, particularly with regards to the acquisition of land for its various projects. Here are some of the key allegations and controversies surrounding Adani Group and its relationship with Prime Minister Modi:

 

1. Land acquisition: Adani Group has been accused of acquiring vast tracts of land in Gujarat and other states at cheap rates through questionable means, such as coercion and intimidation of local residents. The company has also been accused of not adequately compensating those whose land was acquired.

 

2. Environmental violations: Adani Group has faced numerous allegations of environmental violations, particularly in its port and power projects. It has been accused of violating environmental regulations, damaging mangroves, and polluting air and water resources.

 

3. Crony capitalism: Adani Group has been accused of benefiting from its close ties with the Modi government. The company has reportedly received favorable treatment in the form of government contracts, tax breaks, and other benefits.

 

4. Offshore accounts: In 2014, leaked documents known as the "Panama Papers" revealed that several Adani Group companies were incorporated in tax havens like the British Virgin Islands. Adani Group denied any wrongdoing.

 

5. Adani Group's rising fortunes: Critics have pointed out that Adani Group's fortunes have risen significantly since Modi became Prime Minister in 2014. The company's stock prices have surged, and it has won several lucrative government contracts.

 

However, it's worth noting that Adani Group has denied all allegations of wrongdoing, and Modi's government has repeatedly defended the company against accusations of crony capitalism. The Indian government has also said that it has no role in the Panama Papers leak and that any investigation into Adani Group's offshore accounts would be carried out by the appropriate authorities.

 

6. Adani's Coal Mining Project: Adani Group's coal mining project in the Galilee Basin of Queensland, Australia has also been highly controversial. The project has faced opposition from environmentalists and indigenous groups who argue that it will have severe environmental and social impacts. Adani has been accused of obtaining the necessary approvals for the project through political influence and by downplaying the project's environmental impact.

 

7. Adani Group's alleged tax evasion: In 2021, a report by the Australian Tax Office (ATO) alleged that Adani Group had avoided paying taxes on profits made from its Australian operations by diverting money to offshore entities. Adani denied the allegations, calling them "baseless and motivated."

 

8. Adani Group's links to the BJP: Adani Group has been accused of having close links to the ruling Bharatiya Janata Party (BJP), of which Modi is a member. Critics have alleged that Adani has used its influence with the BJP to secure government contracts and favorable treatment.

 

9. Adani Group's acquisitions: Adani Group has made several high-profile acquisitions in recent years, including the acquisition of Mumbai International Airport and the acquisition of a stake in the Krishnapatnam Port in Andhra Pradesh. These acquisitions have raised questions about Adani Group's growing clout and its ability to secure favorable deals.

 

Overall, there have been numerous allegations and controversies surrounding Adani Group's business practices and its relationship with the Modi government. While the company has denied any wrongdoing, the allegations continue to fuel public distrust and criticism of both Adani Group and the Modi government.

 

10. Adani Group's media ownership: Adani Group's acquisition of several media outlets in India has also been a topic of controversy. Critics have alleged that the company is using its media ownership to silence dissenting voices and promote its own interests. Adani Group has denied these allegations.

 

 

 

11. Adani Group's loans from public banks: Adani Group has been accused of receiving loans from public banks in India at favorable rates, which critics say is another example of crony capitalism. The company has denied any wrongdoing and has pointed out that it has always followed proper procedures in obtaining loans.

 

12. Adani Group's labor practices: Adani Group has also faced allegations of labor violations in its various projects, including allegations of using child labor and violating workers' rights. The company has denied these allegations and has said that it follows all applicable labor laws and regulations.

 

It's worth noting that Adani Group has also made significant contributions to India's economy and infrastructure development. The company's port and logistics projects, for example, have helped to improve India's transportation infrastructure and boost trade. However, the various allegations and controversies surrounding Adani Group have raised questions about the company's business practices and its relationship with the government.

 

More about how to loss Adani's LIC:

 

In recent years, there have been calls for the Life Insurance Corporation of India (LIC), the country's largest insurer, to divest its stake in Adani Group. LIC currently holds a significant stake in Adani Group companies, including Adani Ports and Special Economic Zone Ltd (APSEZ).

 

Those calling for LIC to divest its stake in Adani Group argue that it's a conflict of interest for the insurer to hold shares in a company that has faced numerous allegations of irregularities and environmental violations. They also argue that LIC, which is a state-owned company, should not be seen as supporting crony capitalism.

 

Here are some of the ways that LIC could divest its stake in Adani Group:

 

1. Sell the shares on the open market: LIC could sell its shares in Adani Group companies on the open market. This would involve selling the shares to other investors, which would reduce LIC's stake in the company.

 

2. Offer the shares to existing shareholders: Another option would be for LIC to offer its shares in Adani Group companies to existing shareholders. This would give the shareholders the opportunity to increase their stake in the company.

 

3. Direct sale to Adani Group: LIC could also sell its shares directly to Adani Group. This would allow Adani Group to increase its stake in the company.

 

It's worth noting that any decision to divest its stake in Adani Group would be up to LIC's board of directors and would need to be based on a careful consideration of the company's financial and business interests. It would also need to comply with applicable regulations and procedures.

In addition to the above options, there are other strategies that LIC could use to reduce its stake in Adani Group or manage its exposure to the company. These include:

 

1. Investing in other companies: Instead of investing in Adani Group, LIC could choose to invest in other companies that align better with its values and objectives. This would allow LIC to diversify its portfolio and reduce its exposure to Adani Group.

 

2. Engaging with Adani Group: LIC could engage with Adani Group and encourage the company to improve its environmental, social, and governance practices. This could involve dialogues with the company's management, shareholder resolutions, or other forms of engagement.

 

3. Advocacy: LIC could also use its position as a major investor to advocate for changes in government policies and regulations that would address the issues surrounding Adani Group and other companies with similar controversies.

 

4. Implementing ESG criteria: LIC could adopt Environmental, Social, and Governance (ESG) criteria when making investment decisions. This would involve considering factors such as a company's environmental impact, labor practices, and governance when deciding whether to invest.

 

It's worth noting that any strategy to reduce LIC's exposure to Adani Group would need to be balanced against the insurer's financial and business interests. Ultimately, any decision would need to be based on a careful assessment of the risks and benefits of divesting or reducing the stake in Adani Group.

 

Adani's how much money loss

 

It's difficult to determine how much money Adani Group has lost as a result of the various controversies and allegations surrounding the company. The impact on the company's finances would depend on a variety of factors, including the severity of any legal or regulatory action taken against the company, the impact of negative publicity on the company's reputation, and the company's ability to secure future contracts and investments.

 

That being said, Adani Group's share prices have experienced significant volatility in recent years, with sharp declines followed by recoveries. For example, in June 2021, APSEZ shares fell by over 10% after reports that the National Securities Depository Limited had frozen the accounts of three foreign funds that owned shares in the company. The shares recovered after the company denied the reports and the accounts were unfrozen.

 

Similarly, in November 2020, after reports of potential regulatory action against the company over alleged violations at its Australian coal mine, Adani Enterprises' shares fell by over 15%. However, the shares recovered after the company denied the allegations and no action was taken.

 

Overall, it's difficult to quantify the financial impact of the various controversies surrounding Adani Group. However, the controversies have raised concerns about the company's business practices and governance, which could have longer-term implications for the company's finances and reputation.