Adani - No More Business As Usual

If the controversy around the industrialist drags on, the government will have to work hard to shift the focus back to its agenda in what is an important year

- Pratul Sharma

Over the next 15 months, elections are set to dominate the discourse in India. In that context, the 106-page Hindenburg report against industrialist Gautam Adani may well become part of the script for an intense political war.

In view of the Gujarati tycoon’s perceived proximity to Prime Minister Narendra Modi and the group’s massive growth in the last few years, opposition parties latched on to the report and demanded investigations by market regulators and even a joint parliamentary committee (JPC) probe into the alleged irregularities.

Congress leader Rahul Gandhi, seemingly energised by his recent 3,500km-walk, led his party’s attack: “During the yatra, youth kept asking me, ‘How is that Adani is so successful? How did his net worth jump from $8 billion to $140 billion USD since 2014?’” Rahul has been consistent in attacking the government for its “pro-corporate” image. He had limited success in 2015 when his “suit boot ki sarkar” jibe forced the Modi government to make a policy shift to earn a pro-poor image.

The Trinamool Congress, the Janata Dal (United)-Rashtriya Janata Dal alliance, the Samajwadi Party and the Aam Aadmi Party have taken up the issue to embarrass the BJP, which is a key opponent in their states. The opposition’s main argument against the corporate house is its business links with public sector entities like the State Bank of India and the Life Insurance Corporation of India.