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Journalism of Courage
Union Finance Minister Nirmala Sitharaman said Friday that both LIC and SBI were not “over-exposed” (to Adani Group shares) and that “investors’ confidence” would endure in the market. Talking to reporters outside Parliament House, her colleague Parliamentary Affairs Minister Pralhad Joshi slammed the Opposition for disrupting Parliament proceedings over the Hindenburg report. “The government has nothing to do with it. There is absolutely no connection. Discussion on the President’s Address is the priority. They do not have any issue,” he said.
In the party, however, most leaders refrained from commenting on the developments. Sources said they were told that this was a matter for the government and the institutions to respond to rather than the party.
Still, after Gautam Adani announced the withdrawal of his group’s follow-on public offer Wednesday night, BJP leaders have been cautious about its collateral impact on the government especially in a pre-poll year. Some BJP leaders said that they are waiting for an “institutional” response. While market regulator SEBI is yet to respond, Reserve Bank of India Thursday sought details from banks on their exposure to Adani Group companies and Friday said that the banking sector was resilient and stable.
The fact that the Adani crash so far doesn’t affect many individual investors — mutual funds have little exposure — has helped the party keep an arm’s length from the sequence of events set into motion after the US research firm’s report. Said a senior leader: “If the fall continues and gets more complicated, it will be a challenge,” said a leader.
Another party leader said the Adani Group’s “defence” against the charges equating them “a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India” has not gone down well.
A section in the BJP, including MPs, believe that the firm and Adani are facing a “targeted” attack. A party leader said that while many of them are reticent to comment as the matter is “too technical”. There are some leaders who allege a conspiracy, pointing out that “the Opposition, especially the Congress, has been targeting Adani”.
A BJP MP gave the example of the Opposition’s campaign against the Rafale aircraft deal. “The Congress went hammer and tongs alleging corruption in the deal. But the Supreme Court cleared it. If there is any specific case of wrongdoing, why doesn’t the Opposition go to court?” the MP said.
