Congress raises questions over Adani Group’s acquisition of Gangavaram port

File Photo/PTI

Adani Group's acquisition of the Gangavaram port has come under scrutiny with Congress, on Friday, August 25, asserting that a joint parliamentary probe will reveal how a conglomerate could "grab so many prize assets" across multiple strategic sectors swiftly and at a heavily discounted rate, PTI reported.

Congress general secretary Jairam Ramesh cited media reports that allegedly document the modus operandi behind the astounding rise of what he dubbed as the "Modi-made Monopoly" in multiple crucial sectors with the Gangavaram Port acquisition being the case study.

Ramesh, in a post on X (formerly known as Twitter), elaborated on how the report raises "piquant questions" on Adani's ability to buy debt-free Gangavaram port of Andhra Pradesh that should be valued at double the Rs. 6,200 crore the conglomerate paid by any reasonable valuation metric.

"How was it acquired at a much lower EBIDTA multiple than Adani's own deal with the debt-laden Krishnapatnam port," Ramesh questioned. He further questioned how could Adani pick up six ports in nine years without any other bidding. "How did the Adani Group's EBIDTA grow 17 times in only five years from 2017-18," he asked.

Ramesh claimed that Adani Group's strategy seemed to be an acquisition of companies and services in the transport utility space with a "sustained focus on acquisitions at a deep discount value".

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The Congress leader then said that since February 5, 2023, they (the grand-old party) have asked Prime Minister Narendra Modi over 100 questions on his special relationship with businessman Gautam Adani through their series Hum Adani Ke Hain Kaun (HAHK) series. "Only a JPC can uncover how PM Modi has helped his close friend Adani grab so many prize assets in many strategic sectors so quickly, and at a deep discount," he tweeted.

Adani's financial dealings have been under the scanner the American short seller Hindenburg alleged "irregularities" and accused the group of stock price manipulation. The Adani Group, though, denied all allegations levelled against them however, the Opposition parties have been demanding a JPC probe into the issue.