Congress President Mallikarjun Kharge said here on Sunday that a Joint Parliamentary Committee (JPC) is imperative to investigate this “massive scandal” in the wake of Hindenburg Research report against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch.

The US-based short seller, on Saturday, alleged that “Buch and her husband Dhaval Buch had stakes in obscure offshore entities used in the Adani money siphoning scandal.”

Reacting to the report, the Congress chief wrote in a post on X, “SEBI had previously cleared Adani, a close associate of PM (Narendra) Modi, before the Supreme Court following the January 2023 Hindenburg Report revelations. However, new allegations have surfaced regarding a quid-pro-quo involving the SEBI Chief.”

Stating that the small and medium investors belonging to the middle class who invest their hard-earned money in the stock market need to be protected, as they believe in the SEBI, he said, “A Joint Parliamentary Committee (JPC) inquiry is imperative to investigate this massive scandal.

“Until then, concerns persist that PM Modi will continue to shield his ally, compromising India’s Constitutional institutions, painstakingly built over seven decades,” Kharge, who is also the leader of the Opposition in the Rajya Sabha, said.

Former Congress president and Leader of Opposition in Lok Sabha Rahul Gandhi said, “The integrity of SEBI, the securities regulator entrusted with safeguarding the wealth of small retail investors, has been gravely compromised by the allegations against its Chairperson.”

He also posed a volley of questions to the government over the matter.

“Why hasn’t SEBI Chairperson Madhabi Puri Buch resigned yet?If investors lose their hard-earned money, who will be held accountable—PM Modi, the SEBI Chairperson, or Gautam Adani?In light of the new and very serious allegations that have surfaced, will the Supreme Court look into this matter suo moto once again?,” Gandhi questioned.

Taking a jibe at the Prime Minister, he said, “It is now abundantly clear why Prime Minister Modi is so afraid of a JPC probe and what it might reveal.”

Echoing similar sentiments, Congress Deputy Leader in the Lok Sabha Gaurav Gogoi, in a post on X, wrote, “The latest allegations of SEBI Chief’s stakes in Adani Group’s offshore funds are alarming. This explains the overall resistance of the regulator in probing allegations against the Adani group over the past year. If true, this conflict of interest casts a shadow over the trustworthiness of SEBI as well.”

Attacking the ruling dispensation, he said, “The loss of credibility of institutions under the Modi Government has directly contributed to crony capitalism in India. There should be an immediate inquiry into the allegations monitored by a Joint Parliamentary Committee.”

Congress General Secretary in-charge of Communications Jairam Ramesh in a statement said, “SEBI’s strange reluctance to investigate the Adani Mega Scam has been long noted, not least by the Supreme Court’s Expert Committee. That Committee had pointed out in its report that SEBI had in 2018 diluted and in 2019, entirely deleted the reporting requirements relating to the ultimate beneficial (i.e. actual) ownership of foreign funds.”

The Congress MP said, “The Hindenburg Research revelations show that SEBI Chairperson Madhabi Puri Buch and her husband invested in the same Bermuda and Mauritius-based offshore funds in which Vinod Adani and his close associates Chang Chung-Ling and Nasser Ali Shahban Ahli invested funds earned from the over-invoicing of power equipment. These funds are believed also to have been used to amass large stakes in Adani Group companies in violation of SEBI regulations.”

“It is shocking that Buch would have a financial stake in these same funds. This raises fresh questions about Gautam Adani’s two 2022 meetings in quick succession with Buch shortly after she became SEBI chairperson. Recall that SEBI was supposedly investigating Adani transactions at the time,” he said.

Ramesh demanded that the government should act immediately to “eliminate all conflicts of interest in the SEBI investigation of Adani”.

“The fact is that the seeming complicity of the highest officials of the land can only be resolved by setting up a JPC to investigate the full scope of the Adani Mega Scam,” he said.

Addressing a press conference at the party headquarters, Congress’ Social Media Chairperson Supriya Shrinate said, “This entire revelation has raised questions on the credibility of the SEBI Chief, government and the Prime Minister.