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The Finance Ministry on Monday told Lok Sabha that the Securities and Exchange Board of India (SEBI) and the Directorate of Revenue Intelligence (DRI) are probing some Adani group companies. However, it ruled out an investigation by the Enforcement Directorate.
The Ministry also came out with ultimate beneficial owners of Foreign Portfolio Investors (FPI) having stake in six Adani group companies.
“SEBI is investigating some Adani Group companies with regard to compliance with SEBI Regulations. Further, the Directorate of Revenue Intelligence (DRI) is investigating certain entities belonging to the Adani Group of Companies under laws administered by it,” Pankaj Chaudhary, Minister of State in Finance Ministry said in a written answer, spread over 86 pages to the question put up by TMC MP Mahua Moitra.
No ED investigation
Citing confidentiality clause, he said that as far as investigation under Income Tax Act, 1961 is concerned, disclosure of information regarding specific taxpayer is prohibited except as provided under Section 138 of Act. “No such investigation is going on in the Enforcement Directorate (ED),” he said.
These details are out almost a month after the stock market saw huge selling in stocks of Adani group companies after media reports claimed freezing of three FPI — Albula Investment Fund, Cresta Fund and APMS Investment Fund holding shares in Adani Group Companies.
However, one of the group company Adani Total Gas informed stock exchanges that these reports are blatantly erroneous and are being done to deliberately mislead the investing community. It also said it has written confirmation from the Registrar and Transfer Agent clarifying that the Demat Account in which the aforesaid funds hold the shares of the Company are not frozen. It did mention that debit in accounts have been suspended based on the SEBI order.
Meanwhile, the Minister said that in a matter pertaining to issuances of Global Depository Receipt (GDR) by certain Indian listed companies, SEBI, vide Order dated June 16, 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 the SEBI,” he said.
The reply by the Minister also contained names of Ultimate Beneficial Owner (UBO)/Senior Management Official (in case no BO identified) of FPI having stake in Adani group companies. For Adani Total Gas there are 418 names, for Adani Power 127, for Adani Green Energy 482, for Adani Ports and Special Economic Zone Limited 562, for Adani Enterprises 366 and for Adani Transmission there are 337 names.
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