Market regulator Securities and Exchange Board of India (SEBI) and the directorate of revenue intelligence (DRI) are investigating some companies of the Adani group, the Union government told the Parliament on Monday.
In a written reply in the Lok Sabha, Pankaj Chaudhary, minister of state for finance, says, "SEBI is investigating some Adani group companies about compliance with SEBI regulations. Further, the DRI is investigating certain entities belonging to the Adani group of companies under laws administered by it."
"As far as investigation under the Income Tax Act, 1961 is concerned, disclosure of information regarding specific taxpayer is prohibited except as provided under Section 138 of the Act. No such investigation is going on in the enforcement directorate (ED)," the minister says.
Mahua Moitra, member of Parliament (MP) from Trinamool Congress has asked questions about investigations and details of the beneficial ownership of foreign portfolio investors (FPIs) owning a stake in the Adani group companies.
The MP had asked, "Whether it is a fact that three funds namely Albula Investment Fund Ltd, Cresta Fund Ltd, and APMS Investment Fund Ltd are in the SEBI frozen list of May and 15th June but a clarification is issued by NSDL that these accounts are not frozen in the case of Adani companies and if so, the details thereof?"
Responding to this, Mr Chaudhary, the minister says, "In a matter pertaining to issuances of global depository receipt (GDR) by certain Indian listed companies, SEBI vide order dated 16 June 2016 had directed depositories to freeze particular beneficiary accounts of certain FPIs including Albula Investment Fund, Cresta Fund, and APMS Investment Fund. However, no order in respect of other beneficiary accounts of these three FPIs has been passed by SEBI."
Ms Moitra, the MP, has also asked the question whether people associated with the Monterosa Group, AlastairGuggenbuh1-Even, Eric Widmer, Martinde Quevain, Florian Linner are under investigation by the agencies.
However, the minister told her that none of these people is under any investigation.
Six companies of the Adani group are listed and traded on recognised stock exchanges in India. The holding of FPIs in these companies is based on day-to-day trading of shares and, thus, dynamic, the minister added.
Shares of Adani Enterprises Ltd ended Monday 1% down at Rs1,380.55, Adani Ports and Special Economic Zone Ltd 2% down at Rs673.70, Adani Power Ltd 2.80% down at Rs102.30, Adani Transmission Ltd down 4% at Rs969, Adani Green Energy Ltd down 2.76% at Rs976.15 and Adani Total Gas Ltd down by 4.77% at Rs856.40 on the BSE. The 30-share Sensex closed Monday 1.1% down at 52,553 points.