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The Lokpal, India's anti-corruption ombudsman, has dismissed a complaint filed against the chairperson of the Securities and Exchange Board of India (SEBI) related to the Adani Group controversy. The complaint, filed by a Member of Parliament (MP) from the Trinamool Congress, alleged that SEBI had failed to adequately investigate the claims made by Hindenburg Research in its damning report on the Adani Group in January 2023. Hindenburg's report alleged that the Adani Group had engaged in stock manipulation and accounting fraud, which the group vehemently denied. The MP's complaint was based on the allegation that SEBI had shown a lack of interest in investigating the Adani Group's alleged use of offshore entities to inflate stock prices.
The Lokpal, in its order, stated that the complaint lacked sufficient evidence to establish a prima facie case of corruption against the SEBI chief. The Lokpal cited several reasons for its decision, including the fact that the complaint was based largely on the Hindenburg report without adequate verification of its claims. The Lokpal also questioned the complainant's haste in filing the complaint, noting that the MP filed it the same day the Hindenburg report was published, without properly verifying the information contained in the report.
The Lokpal's order highlights the challenges faced by anti-corruption bodies in India. It raises concerns about the reliance on anonymous and unverified information in allegations of corruption. The Lokpal's decision to demand further evidence from the complainants indicates a cautious approach to handling serious allegations against powerful individuals and institutions. The case raises questions about the effectiveness of India's anti-corruption mechanisms in addressing complex financial allegations, particularly when they involve powerful business entities and government agencies.
Source: Lokpal claims complaint against SEBI chief 'falls short' of grounds for ordering probe