National News

Hindenburg: Why Rahul Gandhi Is A Hypocrite Of The First Order

August 12, 2024
The Commune

Congress chief Rahul Gandhi, who is using the questionable Hindenburg research to cast doubt on India’s stock markets, is a hypocrite for keeping a hefty 42% of his declared assets invested in the very markets he’s warning others about.

Backlash against Gandhi

Gandhi, the scion of the Congress party, is facing severe criticism for his unabated support of the allegations raised by Hindenburg, a US-based short-selling company, against SEBI, the Indian stock market regulator.

To endorse the report released on 11 August 2024, Gandhi provoked a backlash from citizens, investors, and political figures. Since the Congress party assumed the role of opposition, Gandhi and his allies have consistently challenged the ruling BJP government, often placing blame even when it’s not warranted.

Aligning with a foreign entity and a short-selling firm that previously failed in India, Gandhi and the Congress party are now being criticised for what many perceive as an attempt to undermine the credibility of India’s financial markets.

Following the allegations from the Hindenburg report against the Securities and Exchange Board of India (SEBI) chairperson on 10 August 2024, Gandhi took to his official X account to cast doubt on the integrity of the Indian stock market. Many saw this move as a blatant attempt to erode confidence in the country’s economy.

Congress misinformation against SEBI

On his X account, Gandhi remarked, “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. Honest investors nationwide have pressing questions for the government: – 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? It is now abundantly clear why Prime Minister Modi is so afraid of a JPC probe and what it might reveal.” 

Adding a video message, he said,  “Imagine you are watching the International cricket match, between India and Australia…and every single person is watching the match and those playing the match know that the umpire is compromised… what would happen to the match…what would happen to the fairness of the match…what would happen to the outcomes…How would you feel as somebody participating in the match… this is exactly what is happening in the Indian stock markets…over the last few years larger and larger number of people have been investing in the Indian stock markets. They invest their hard-earned, honestly earned savings in the stock market and it is my duty as the Leader of the Opposition to bring to your notice that there’s a significant risk in the Indian stock market because the institution that governs the stock markets is compromised.

Now I will explain to you exactly how and why it is compromised. A serious allegation against the Adani Group was illegal share ownership and price manipulation using offshore funds. It has now emerged that SEBI Chairwoman Madhabi Buch and her husband were interested in one of those funds. This is an explosive allegation because it alleges that the umpire herself is compromised, and the savings of billions of Indians, both hard-earned and honestly earned, are at risk. It is, therefore, imperative that this matter be investigated. Retail investors, Honest investors, and Pensioners have three questions: 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? It is abundantly clear why Prime Minister Modi is so afraid of a JPC probe and what it might reveal.”

Why Rahul Gandhi Is A Hypocrite

In a striking display of hypocrisy, Gandhi advises investors to stay away from the Indian stock market. He is casting doubt on its stability, which indirectly benefits foreign entities. However, his personal financial interests reveal a different story.

According to his election affidavit for the 2024 Lok Sabha elections, Gandhi holds investments worth ₹8,32,05,831 ~8 crore in bonds, debentures, and shares within the Indian stock market. Notably, 42% of his declared assets are invested in Indian markets, reflecting his personal confidence in their performance.

He is a hypocrite for stopping Indians from benefitting from a market that is giving him good returns on his investments.

Gandhi’s investments include shares (₹4.3 crores), mutual funds (₹3.8 crores), and gold bonds (₹15 lakh). His movable assets have surged by 59% since 2019, underscoring the strength of the Indian markets he publicly criticises. 

Here is a snapshot of his investments:

  • Young Indian: 1,900 equity shares of ₹100 each – ₹1,90,000
  • Alkyl Amines Chemical Ltd: 373 shares – ₹7,39,211
  • Asian Paints Ltd: 1,231 shares – ₹35,29,954
  • Bajaj Finance Ltd: 551 shares – ₹35,89,407
  • Deepak Nitrite Ltd: 568 shares – ₹11,92,033
  • Dr. Lal Pathlabs Ltd: 516 shares – ₹10,43,429
  • Fine Organic Industries Ltd: 211 shares – ₹8,56,301
  • Divis Laboratories Ltd: 567 shares – ₹19,76,222
  • Garware Technical Fibres Ltd: 508 shares – ₹16,43,075
  • GMM Pfaudler Ltd: 1,121 shares – ₹14,00,073
  • Hindustan Unilever Ltd: 1,161 shares – ₹27,02,460
  • ICICI Bank Ltd: 2,299 shares – ₹24,83,725
  • Info Edge (India) Ltd: 85 shares – ₹4,45,502
  • Infosys Ltd: 870 shares – ₹14,21,580
  • ITC Ltd: 3,093 shares – ₹12,96,276
  • LTI Mindtree Ltd: 407 shares – ₹21,14,100
  • Mold-Tek Packaging Ltd: 1,953 shares – ₹14,95,510
  • Nestle India Ltd: 1,370 shares – ₹35,67,001
  • Pidilite Industries Ltd: 1,474 shares – ₹42,27,432
  • Suprajit Engineering Ltd: 4,068 shares – ₹16,65,439
  • Tata Consultancy Services Ltd: 234 shares – ₹9,87,305
  • Titan Company Ltd: 897 shares – ₹32,58,980
  • Tube Investments Of India Ltd: 340 shares – ₹12,10,621
  • Vertoz Advertising Ltd: 260 shares – ₹1,89,085
  • Vinyl Chemicals (India) Ltd: 960 shares – ₹3,24,240
  • Britannia Industries Ltd: 5.5 NCD – ₹1,558
  • HDFC MCOP DP GR: ₹19,58,249
  • HDFC Small Cap DP GR: ₹17,89,032
  • ICICI EQ&DF D Growth: ₹19,03,179
  • PPFAS FCF D Growth: ₹19,76,536
  • HDFC Small Cap Reg-G: ₹1,23,85,545
  • HDFC Hybrid Debt Fund-G: ₹79,01,329
  • ICICI Prudential Reg Savings-G: ₹1,02,19,702
  • Sovereign Gold Bond: 220 units – ₹15,21,740

Agenda 2.0 – Hindenburg Research Report

On 10 August 2024, the US-based short-seller Hindenburg Research made serious allegations against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), and her husband, Dhaval Buch. The report claims that the Buchs held stakes in obscure offshore funds involved in the Adani Group’s alleged financial misconduct.

According to Hindenburg, the Buchs were invested in a complex offshore fund structure linked to high-risk jurisdictions and overseen by a company with connections to the Wirecard scandal. Gautam Adani’s brother, Vinod, reportedly used these funds to manipulate financial markets. The report also suggests that shortly before Madhabi Buch’s appointment to SEBI, her husband shifted their investments into his sole ownership, potentially to evade scrutiny related to her new regulatory position.

Madhabi Puri Buch has vehemently denied these allegations, labeling them as a “sad case of character assassination” and asserting that their financial dealings are fully transparent. The Adani Group also rejected claims of commercial relationships with individuals or issues highlighted in the report.

The Supreme Court had earlier dismissed calls for a CBI or court-monitored probe into the Adani-Hindenburg matter, expressing confidence in SEBI’s investigation.

This new revelation follows a previous Hindenburg report from 18 months ago, which accused the Adani Group of stock manipulation and accounting fraud—a claim the conglomerate has denied. But the US-based firm, unexpectedly earned only $4.1 million from betting against Adani Group securities. This amount is insufficient to cover their research costs. Critics argue that, in light of this, Hindenburg may be resorting to fresh allegations against SEBI’s independence and integrity as a new strategy to justify their earlier claims.

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