Here’s why the Adani Group Case continues to stir economic and political tension in India

The Adani Group was accused of stock manipulation by the US-based Hindenburg Research Group in January 2023 in their annual report and since then the conglomerate observed a complete drop in its share prices.

Adani Group was accused of data manipulation by the US-based Hindenburg Research Group in January 2023. Since then the conglomerate has seen a major downfall in the share prices for almost all its enterprises which have driven the company to bear losses of billions. However, now the case is not an economic issue but has also stirred political unrest in India.

The Opposition in India has been accusing the Centre of providing biased support to the Adani Group without an impartial investigation into the matter. They also accuse public institutions like LIC and SBI of siding with Adani and risking public money. Although the apex court has issued a notice for setting up the SIT to look into this matter, uncertainties still prevail in the minds of the Opposition. The stock prices are dropping on a daily level without any signs of recovery for Adani Enterprises and apart from the fall, the Group is in talks to induce more funds to sustain their market value against the losses they are suffering.

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Amid this economic crisis, what is interesting to see is how the Indian political scenario changed and joined hands against a foreign troll. Recently, George Soros, an American billionaire investor commented on the Indian political structure in relation to the ongoing issue with the Adani Group. It stated that PM Modi will have to answer several questions and the Indian political structure will see a democratic revival due to this. Soros also said that the recent stock rout will “significantly weaken Modi’s stranglehold on India’s federal government” and open the door to push for much-needed institutional reforms. I may be naïve, but I expect a democratic revival in India,”

Against these statements, veteran Congress leader Jairam Ramesh tweeted, “Whether the PM-linked Adani scam sparks a democratic revival in India depends entirely on the Congress, Opposition parties & our electoral process. It has NOTHING to do with George Soros. Our Nehruvian legacy ensures people like Soros cannot determine our electoral outcomes,”

External Affairs Minister, S. Jaishankar also gave a befitting reply to Soros in his speech. Currently, there seems to be no updates by the SIT on the Adani issue.