RS, LS proceedings adjourned for the second time after oppn raise Adani's US indictment issue

Lok Sabha and Rajya Sabha were suspended for a second day on Nov 27 after being adjourned twice following disruptions by members demanding a discussion of the US indictment of billionaire Gautam Adani, while stocks of his group's companies regained after some losses.

As soon as the House started proceedings, the opposition Members of Parliament (MPs) submitted notices to move adjournment motions in both the lower and upper houses to raise concerns about issues including the Manipur violence, the Adani indictment, and the ongoing violence in Sambhal, Uttar Pradesh.

Last week U.S. authorities accused Adani, his nephew and executive director Sagar Adani, and the managing director of Adani Green — ADNA.NS) — Vineet S. Jaain, of being part of a scheme to pay bribes of $265 million to secure power supply contracts in India and misleading U.S. investors.

The Adani Group has denied the charges as "baseless" and vowed to "seek all possible legal recourse".

Members of parliament raised slogans and demanded a consideration of the Adani claims, disrupting the proceedings for the second day since the start of the winter session this week.

“I at this moment give notice of my intention to ask for leave to move a motion for the adjournment of the house business to discuss a definite matter of urgent importance," Congress MP Manickam Tagore said in his adjournment motion.

Congress MP Manish Tewari said, “Impact on India as a business destination and the robustness of our regulatory and oversight processes, following two indictments in the United States against the Adani conglomerate,”

Rahul Gandhi, the leader of the Congress and a strong opponent of Adani, stated that Adani ought to be taken into custody.

Outside parliament, Gandhi told reporters “The government is protecting the gentleman who has been indicted in the United States.”

The ruling Bharatiya Janata Party (BJP) has disassociated itself from the incident, but the government has not commented on the indictment.

In the Rajya Sabha, Congress MP Randeep Singh Surjewala also submitted a notice, seeking to suspend the scheduled business to discuss serious allegations in a US court indictment. The indictment claims the Adani Group bribed state officials to secure power supply agreements through SECL tenders.

The winter session of Parliament began on Nov 25, with both Houses adjourning early due to disruptions. The session will continue until Dec 20.

On Nov 27, Adani Green, the company at the center of the indictment in a statement said Gautam Adani had been charged in the United States for alleged violations of securities law and faced potential fines but had not been charged under the US Foreign Corrupt Practices Act.

Also, in a stock exchange filing recently, Adani Green said a complaint by US regulator the Securities and Exchange Commission (SEC) sought "an order directing the defendants to pay civil monetary penalties (but) it does not quantify the amount of penalty".

The civil action launched by the SEC parallels US federal prosecutors' indictment against Adani and others.

Meanwhile, a BJP spokesperson was recently quoted as saying that the party had no reason to defend Gautam Adani, adding that the party was not against industrialists but considered them partners in nation-building efforts.

"Let him defend himself," Gopal Krishna Agarwal said, adding, that the law would take its own course in case of wrong-doing.

The shares of 10 listed Adani Group firms recovered about $9 billion in market value on Nov 27, after having shed up to $34 billion since the indictments, up to the Nov 26 close.

Adani Green, the hardest hit by the accusations, jumped 9%, but is still down some $8 billion in value, reports said.

The indictments are seen as the biggest setback for Adani, and his conglomerate.