The Congress on Wednesday (August 21, 2024) questioned the Competition Commission of India (CCI) over its approval of all acquisitions by the Adani Group, alleging that the conglomerate is building monopolies across key infrastructure sectors, to the detriment of customers.
The Congress statement came on a day when it held press conferences across 10 cities on the Adani group, while another 10 press meets are planned for Thursday.
In a post on X, Congress communications chief Jairam Ramesh referred to the CCI raising concerns over the proposed Reliance-Disney merger due to the possibility that it would stifle competition. “It is a good time to reflect on how the CCI should have also had the courage to address how the non-biological PM’s other favourite business conglomerate is acquiring companies and reducing competition across various industries,” Mr. Ramesh said.
‘Building monopolies’
He pointed out that the CCI is legally mandated to approve mergers and acquisitions that exceed a certain threshold size. “Yet, all acquisitions by the Adani Group have been approved, even as the company builds monopolies in sectors like ports, airports, power, and cement — industries at high risk of market failure and anti-competitive practices — often through threats and intimidation that have the backing of the powers-that-be,” Mr. Ramesh alleged.
The Congress leader said that the CCI, in recent years, has not hesitated to impose penalties on both domestic and global firms for alleged abuse of dominance. But, he claimed, a five-fold increase in the User Development Fees (UDF) paid by passengers at the Lucknow and Mangalore airports has been allowed by the Union government.
“These airports were among the six awarded to Adani after rules were altered to favour the company, despite objections from the NITI Aayog and the Ministry of Finance. Similarly, electricity prices in States like Haryana, Jharkhand, and Gujarat have risen sharply thanks to the Adani conglomerate’s policies and actions,” Mr. Ramesh said.
Regulatory failures
“Why do India’s regulatory institutions, including SEBI, disappear when transactions involve the non-biological Prime Minister’s closest friend? Why have these typically proactive institutions remained passive as this friend has built monopolies in critical infrastructure sectors, raising prices at the expense of consumers?” he further asked.
The Congress has stepped up its attack on the government after Hindenburg Research released a fresh report against market regulator Securities and Exchange Board of India (SEBI) chairperson Madhabi Buch, alleging that she and her husband had stakes in obscure offshore funds used in the Adani money siphoning scandal.
The Adani group, however, has rejected the Hindenburg report, and called it “malicious”, claiming that it had selectively cited publicly available information.
Published - August 21, 2024 09:13 pm IST
