BJP Rajya Sabha MP and senior advocate Mahesh Jethmalani on Sunday dismissed the latest report by U.S.-based short-seller Hindenburg Research as a "pathetic damp squib" aimed at destabilising India's stock markets.
Hindenburg Research in its report alleged that the head of India's market regulator, Madhabi Puri Buch, previously held investments in offshore funds also used by the Adani Group.
However, Jethmalani took to social media platform X to voice his staunch defence of Buch, accusing Hindenburg of attempting to undermine India's economic sovereignty.
"Hindenburg's 'Something big' is a pathetic damp squib," Jethmalani wrote in a post.
“The announcement prior to its alleged big revelation itself reveals its motive: to destabilize India's stock markets. The pre-publicity ill behoves a reputed 'research analyst'. As regards the 'big' something, there is nothing new against the Adani group,” he added, referring to Hindenburg's cryptic message hinting at a new India-centric report ahead of its release.
"Something big soon India," Hindenburg Research had said in a social media post hours before it dropped another bombshell report.
Hindenburg vs Adani Group: A timeline of events
{{/usCountry}}"Something big soon India," Hindenburg Research had said in a social media post hours before it dropped another bombshell report.
Hindenburg vs Adani Group: A timeline of events
{{/usCountry}}Jethmalani noted that SEBI had issued a notice to Hindenburg seeking information regarding the circumstances of the Adani short sale, to which the short-seller had not responded. Instead, Hindenburg launched what Jethmalani described as a baseless attack on Buch, alleging a conflict of interest.
"The picture thus is one of a U.S.-based profiteer who made millions of dollars at the cost of Indian retail investors now hedging questions legitimately asked by the Indian regulator and brazenly defaming the latter without answering its questions," Jethmalani said. "This reeks of colonial arrogance of days bygone."
Read: SEBI chief Madhabi Puri Buch, husband call Hindenburg allegations 'malicious, motivated’| 10 points
The MP also criticised the so-called left-leaning media outlets for echoing Hindenburg's claims and called on the Indian government to take a hard look at what he described as "anti-national" elements.
"It is time the govt of the day turned its serious attention to these anti-nationals who have no other agenda but to disrupt India's social fabric, distort its polity, and now devastate its economy," he added.
The Hindenburg report has triggered a fresh wave of political and financial scrutiny, with opposition parties demanding a parliamentary inquiry into the matter. However, both SEBI and Buch have denied any wrongdoing.
Buch said that all disclosure requirements had been followed diligently and that the investments in question were made in a private capacity years before she joined SEBI.
Read: Congress demands JPC probe into Hindenburg allegations against SEBI chief
The sub-fund in which Buch and her husband invested, IPE-Plus Fund 1, said on Sunday that it had not invested in any shares of the Adani Group directly or indirectly.
"No investor had any involvement in the fund's operations or investment decisions. Mrs Madhabi Buch and Mr Dhaval Buch's holdings in the fund were less than 1.5% of the total inflow into the fund," the fund's asset manager said in a statement to India's stock exchanges.
The Adani Group has also refuted the allegations, describing them as "red herrings" intended to malign the conglomerate's reputation.
The Congress called on the government to "eliminate all conflicts of interest in the SEBI investigation of Adani". The party demanded a parliamentary inquiry to "investigate the full scope" of the matter.