NEW DELHI, 14 Sep: The Congress on Thursday alleged that the “Adani scam” has exposed the role tax havens play in hiding large-scale violation of Indian laws, and said that the issue should have been discussed at the recent G20 summit.
It said also that if a joint parliamentary committee (JPC) probe is ordered into the allegations against the Adani Group, it will have to make sure that any loopholes for round-tripping and money-laundering are effectively shut.
In a post on X, Congress general secretary Jairam Ramesh said that the rise in Indian outward direct investment in the past 25 years has been a sign of deepening globalisation.
“However, it is disturbing that offshore tax havens like Bermuda, Jersey and Cyprus rank among the top 10 destinations for Indian investment, according to the RBI,” he said.
This is in addition to Mauritius, which has long been suspected as a preferred destination for Indian money-laundering and round-tripping, the Congress leader noted.
“The Adani MegaScam has exposed the critical role such tax havens play in hiding the large-scale violation of Indian laws and regulations. These violations are hollowing out our economy and affecting the credibility of our stock markets,” Ramesh said.
“The G20 was the right forum to take up this issue and ensure concrete action against tax havens. But the prime minister was busy projecting his own image rather than protecting India’s interests,” he claimed.
“A JPC into the Adani MegaScam will have to make sure that any remaining loopholes for round-tripping and money-laundering are effectively shut,” the Congress leader said.
The Congress and other opposition parties have been demanding a JPC probe into the Adani issue and will take up the issue during the upcoming special session of Parliament from 18 to 22 September.
US short-seller Hindenburg Research, in a report released on 24 January, alleged accounting fraud, stock price manipulation and use of tax havens by the Adani Group, triggering a stock market rout.
The Adani Group has denied all allegations by Hindenburg. (PTI)