.Gaja Vasisht
The opposition parties were eagerly waiting for something to grind and now they got the golden opportunity to bleed Modi government. This will go on till the next 2024 general elections and the parliament will not function till then. Please remember crores of rupees of tax payers money will go down into the drain for not allowing the session to conduct its business in a fruitful manner.
Hindenburg has already declared that it has taken short selling position in Adani shares. So this Hindenburg is a typically a short seller mafia having substantial stakes in Adani investments. Once they bought their stakes in Adani they published their fake report with vested interests to make money when the shares crash.
Hindenburg came out with a report that Adani is indulging in accounting fraud, accounting manipulation, shell companies being operated in foreign countries like Mauritius, Singapore, UAE etc etc.
Government of India is holding bilateral agreements with several countries for avoiding double taxation. This agreement is made for the purpose of ease of doing business by big corporate companies where they can borrow money from foreign investors or shell companies which is not illegal. Adani was doing this exactly for the sake of avoiding double taxation in order to bring in foreign investments into his companies in India. It is also known as Tax heaven.
In the year 1985 the Hon'ble Supreme Court of India in it's seven bench ruling against Macdonald Company stated that there's a thin difference between tax evasion and tax avoidance.
It is a common knowledge that corporate companies with the help of their auditors take advantage of several loopholes in laws try to bring in foreign investments to do their business in our country by avoiding tax.
In so far as Adani is concerned it is the biggest company in India today involved in shipping, construction, railways, ports, food chains, consumer products, Airports, power, green energy, coal, Gas and infrastructure etc etc. As such Adani requires huge investments for running his business empire.
Without the cooperation of any government Adani cannot run his show and it is an accepted fact which is also legal as these things had been going on for decades from the times of Nehru. Earlier it was Tata, Birla and Bajaj but now it is Adani Ambani etc.
There's also mention of leverage issue in Adani as alleged by the Hindenburg but one must understand that Arcelor Mittal is the one who bought steel conglomerate Arcelor through leverage buyout without swapping equity. This is not illegal as per law and these kind of businesses were happening in the past also.
Regarding the allegations of debt trap by Hindenburg it is a normal business practice that without debt one cannot do business like Adani who is involved in big ticket projects in India and also in foreign countries. Most of the big loans are borrowed from foreign banks in addition to Indian banks like SBI, LIC etc.
Now let's view from political perspective about Adani issue.
During UPA regime Sonia Gandhi had been using Adani flights for her tours. Today Modi is also using Adani flights. What's wrong in this? No doubt Modi is close to Adani because they hail from the same State. This is known as crony capitalism.
Congress hand is seen behind Hindenburg allegations against Adani. Just look at the sequence of events which led to this issue. First it was BBC when it made wild accusations against our PM on Gujarat violence, then followed by Hindenburg when Republic Day was held followed by Annual Budget, then came Credit Suisse, Dow Jones who joined hands with Hindenburg. Lastly Rahul Gandhi was on his last leg of his Bharat Jodo Yatra in Kashmir. Hindenburg was the climax of Bhara Jodo Yatra.
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