Adanis: Today's Ganderiram Batparias

Samik Lahiri

IN 1922, the renowned Bengali satirist Rajsekhar Basu (better known by his pen name Parshuram) penned the delightful story ‘Shri Shri Siddheshwari Limited,’ introducing the infamous fictional character of Ganderiram Batparia (where "Batparia" translates to "unscrupulous plunderer" in Bengali). Ganderiram was not just a conman; he was a bold risk-taker, a master of fraudulent business schemes. The story describes his impact as: "The moment the audacious entrepreneur Ganderiram stepped onto the scene, the entire atmosphere crackled with energy, as if lightning had struck. Our aspirations leaped from mere thousands to hundreds of thousands."

The tale sharply critiques the greed of those who exploit religion for profit, vividly capturing their insatiable avarice. If written today, the author might face charges under harsh laws like the UAPA. Yet, the Batparias remain relevant, still manipulating and exploiting society.

Like Ganderiram Batparia, who built wealth through savvy trading, the Adani brothers are set to mirror that success. With Narendra Modi’s backing, they dominate India’s asset market, controlling nearly every major sector. In 1981, 19-year-old Gautam Adani returned to Gujarat to help his brother in the plastics business. By 1988, he had started commodity trading with an annual turnover of Rs 2.2 crore. Even in 2001, when Narendra Modi became Gujarat's Chief Minister, Adani's focus was still on trading, with a turnover of Rs 3,300 crore. By 2024, under Modi's patronage, Adani's family fortune has skyrocketed to Rs 11.6 lakh crore, with an empire spanning grain silos, coal mines, airports, ports, and a massive power generation business. From "pins to ports," their reach is limitless.

The Adani group's meteoric rise grabbed global attention, especially after Hindenburg Research's January 2023 report, which raised serious allegations. The Adanis responded with a 400+ page rebuttal, but Hindenburg later claimed they had unanswered 66 out of 88 questions. To grasp the bigger picture, one need only revisit Parashuram's timeless story. It’s striking how Rajshekhar Basu, a chemist, predicted figures like Ganderiram Batparia, Harshad Mehta, and the Adanis more than a century ago, highlighting the enduring patterns of greed and exploitation.

HINDENBURG EXPOSÉ

In January 2023, Hindenburg Research released a bombshell report following a two-year investigation, accusing the Adani Group of massive fraud and stock market manipulation. The detailed exposé, spanning over 100 pages, outlined the following key findings:

Gautam Adani, with a net worth of $120 billion, is accused of building his fortune through deceptive and illegal practices. The report claims his wealth surge was driven by abnormal stock price increases, with seven of his companies seeing an average annual growth rate of 819 per cent between 2019 and 2022.
The Adani Group is run as a family business, with Gautam’s relatives holding key positions, including his elder brother Vinod, who is allegedly behind a network of offshore shell companies used to inflate stock prices.
The group is accused of using a network of shell companies in tax havens like Mauritius, the UAE, and the Caribbean to conduct illicit transactions and artificially boost stock prices. Vinod Adani and his associates are connected to 38 shell companies in Mauritius alone.
Prior government investigations have already uncovered $17 billion in fraudulent transactions within the Adani Group. However, the Securities and Exchange Board of India (SEBI) has not pursued its own investigation, despite media scrutiny.
Investment firms like Elara Capital and Monterosa, heavily involved in Adani's businesses, are under suspicion. Elara Capital allegedly appointed the son of former British Prime Minister Boris Johnson to a high-ranking position in exchange for investments. Leaked emails also revealed links to notorious stock market manipulators.
The report highlights numerous secret, undocumented transactions, including a $420 million investment in Adani Green Energy by a Cyprus-based shell company, "New Leiana," managed by EMICORP – a company with ties to Vinod Adani and accused of international fraud.
Adani's companies are audited by Shah Dhandharia, a tiny firm with only 11 employees. Despite its small size, the firm is reportedly valued at $64 crore and is said to audit 156 Adani-controlled companies. Concerns have been raised about the credibility of such audits, especially with an unusually young auditor signing off on Adani Total Gas Company’s reports.
Hindenburg’s investigation suggests that the Adani Group has managed to maintain its fraudulent activities largely because of widespread fear, with many investors, journalists, and politicians reluctant to challenge them.

This investigation uncovers a web of illicit practices involving shell companies, dubious investments, and questionable financial dealings, painting a picture of a corporate empire built on deception and fear. The report suggests that the scale of the fraud could be even greater than outlined, with many serious allegations still to be fully explored.

METEORIC RISE AND SUDDEN FALL OF ADANI

In 2014, shares of Adani Enterprises were priced at a modest Rs 41. By 2023, that value had skyrocketed to an astonishing 3,800 rupees. Prior to the pandemic in 2019, the stock was trading at just Rs 160. However, following the release of the Hindenburg Research report, the price plunged to Rs 2,118. How did this dramatic shift occur?

The story of Adani’s rise begins in 2002, during the devastating Gujarat riots. At the time, many domestic and international companies distanced themselves from the then Chief Minister of Gujarat, Narendra Modi, who faced accusations of both direct and indirect involvement in the violence. Amidst this political turmoil, Gautam Adani seized an opportunity. By gaining access to Modi’s inner circle, Adani secured government contracts and land deals, thanks to government favours. Their relationship deepened over the years.

In 2012, Adani played a pivotal role in promoting Modi as a national figure during the "Vibrant Gujarat" industrial summit, which set the stage for the BJP's victory in the 2014 general elections and Modi’s rise as prime minister. As Modi's influence grew nationally, so did Adani's, marking the beginning of his ascent on the national stage.

This rise of Adani parallels a historical pattern: the intertwining of corporate power and political influence. Renowned economists, like Poland's Michał Kalecki and France's Daniel Guérin, have documented how corporations were integral to the rise of fascism before World War II. In Nazi Germany, companies like Bayer supported Hitler's ascent. In Italy, corporations like Fiat backed Mussolini, while in Japan, powerful conglomerates such as Nissan helped fuel the rise of General Tojo. Adani's story underscores this historical truth: the rise of far-right movements often goes hand in hand with the consolidation of corporate power.

QUID PRO QUO

In India, a handful of powerful corporations, including Adani, have invested heavily in Narendra Modi's rise to power, a fact that is now undeniable. According to a report by a Delhi-based NGO, the BJP spent an eye-watering 27,000 crore rupees in the 2019 Lok Sabha elections, averaging Rs 49.82 crore per seat. For the 2024 elections, the estimated expenditure has ballooned to Rs 1 lakh crore, nearly double the 2019 amount. Of this, it is estimated that the BJP alone has spent 55 per cent – over Rs 101 crore per seat. But who provided these funds?

The corporations that bankroll the BJP’s campaigns reap far greater rewards through government patronage. Today, an intricate web of corruption binds crony capitalists and the ruling elite, enabling a small group of companies to engage in unchecked exploitation of public resources.

Adani, not satisfied with dominating the Indian market, has expanded his reach globally, often aided by Modi’s influence. In Israel, a staunchly right-wing nation, Adani has secured lucrative contracts in ports, defense manufacturing, and even AI labs, thanks to the cozy relationship between Modi and Israeli Prime Minister Benjamin Netanyahu. Similarly, Modi personally intervened to support Adani’s controversial coal mine, port, and rail project in Queensland, Australia, pressuring State-owned banks to finance the venture. However, this project was eventually canceled after massive public outcry in Australia.

Meanwhile, India’s public assets are being handed over to the Adani Group with alarming frequency. To facilitate these acquisitions, Modi has orchestrated massive loans from state-owned financial institutions such as the Life Insurance Corporation (LIC) and the State Bank of India (SBI). LIC, for example, invested over Rs 30,000 crore in Adani’s companies, even though their inflated value had risen to Rs 56,000 crore. Punjab National Bank (PNB) similarly invested Rs 7,000 crore, while SBI, under Chairman Dinesh Khara, invested Rs 27,000 crore. Other State-owned banks, including Jammu and Kashmir Bank and Bank of Baroda, have also poured significant funds into Adani ventures.

However, after the release of the Hindenburg Research report, the government remained silent about the losses incurred by these state-owned financial institutions due to the plummeting stock prices of Adani’s companies. There are allegations that the Modi government used its influence to pressure various corporate entities to purchase Adani shares in an attempt to prop up the flagging stock prices.

Investigations into Adani's alleged tax evasion and customs fraud, particularly in the diamond trade, have been mysteriously halted. Inquiries into their dealings with electrical equipment were similarly suppressed. The most glaring instance of cover-up occurred in the iron ore import-export business in Karnataka, where the suppression was so blatant that Justice Hegde resigned in protest. Journalist Paranjoy Guha Thakurta, who exposed Adani’s wrongdoing, was even imprisoned.

Given this series of events, one can't help but suspect that the BJP government’s primary objective is to protect the Adani family from facing any legal consequences for their actions, further cementing the quid pro quo between the ruling party and its corporate benefactors.

PEOPLE'S MONEY PLUNDERED

The hard-earned money of ordinary citizens, kept in government banks and insurance companies, is being systematically looted. The recent fall in the stock prices of Adani Group companies has led to significant losses for people who had their savings in state-run institutions. In much the same way that depositors in Ponzi schemes like Saradha and Rose Valley lost their money with the direct or indirect support of leaders and ministers of the Trinamool Government, the funds deposited by ordinary people in government banks and insurance companies are now being siphoned off, this time under the patronage of the Narendra Modi government.

Just as Ponzi companies spent large sums to topple the Left Front government and bring the Trinamool Congress to power, today's crony corporates are funding Narendra Modi's rise to power and sustaining his government. The money looted from the people is flowing back into political coffers, solidifying the nexus between business magnates and political leaders.

Naturally, the West Bengal Chief Minister Mamata Banerjee remains silent on this widespread looting by Adani. Trinamool MPs are notably absent from parliamentary protests against Adani’s financial misconduct and from opposition meetings – an absence likely orchestrated by the chief minister herself. Mamata Banerjee has played a key role in handing over massive tracts of land to Adani in the state, including 10,000 acres in Deucha Pachami and the Tajpur Port project. This deep connection with Adani is reflected in the political financing that follows. In the 2022 elections, the BJP received a staggering Rs 5,270 crore in electoral bond funds, while Trinamool was a close second, receiving Rs 528 crore – up from just Rs 42 crore the previous year. The question arises: who provided this money?

The Modi-Mamata nexus is enabling today’s "Ganderiram Batparias" – modern-day fraudsters-to continue plundering the people, while these same fraudsters fund political campaigns to capture and maintain power. These corporate interests now control much of the country’s media, including television networks and newspapers, ensuring that stories about the corruption of the Batparias and the protests of the people against this looting are either downplayed or completely suppressed in the mainstream media.

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