India opposition MPs seek Adani probe as group losses top $100bn

Indian opposition lawmakers have demanded an investigation into Adani Group, as the crisis surrounding tycoon Gautam Adani's embattled empire deepened, with market losses topping $100bn after a United States short seller accused it of pulling "the largest con in corporate history".

A session of the lower house of India's Parliament was adjourned amid loud protests on Thursday (Feb 2), a day after Adani Group's flagship company abandoned a $2.5bn stock offering meant to help reduce debt levels, restore confidence and broaden its shareholder base.

The opposition Congress party has demanded the setting up of a Joint Parliamentary Committee or a Supreme Court-monitored investigation into the matter and has called on Prime Minister Narendra Modi to speak on the issue.

"Keeping public interest in mind, we want a thorough probe into the Adani issue either by a Joint Parliamentary Committee or a Supreme Court-monitored panel," opposition leader Mallikarjun Kharge said. "There should also be day-to-day reporting of the investigation on the issue."

In a report last week, New York-based investment research firm Hindenburg Research accused Adani Group of a "brazen stock manipulation and accounting fraud scheme over the course of decades".

It also raised concerns about high debt and the valuations of seven listed Adani companies.

Since Hindenburg's report on January 24, group companies have lost nearly half their combined market value. Adani Enterprises – described as an incubator of Adani's businesses – has lost $24bn in market capitalisation.