Govt stays at a distance from companies: What Nirmala Sitharaman said about the Adani saga

Finance Minister Nirmala Sitharaman, while commenting on the Adani-Hindenburg saga and the subsequent stock rout of the conglomerate, said that it is inappropriate to comment when the matter is subjudice. But she also said that the government keeps its distance from businesses. 

“The Government of India stays at a distance from companies. We think it may be inappropriate to comment even as the judiciary is having a look at it,” she said, adding that the Supreme Court-appointed panel will probe the allegations made by the US short-seller Hindenburg, according to a report in Bloomberg.

While speaking from the sidelines of the International Monetary Fund Spring meetings in Washington, Sitharaman spoke about a range of issues in a wide-ranging interview. 

The minister had, earlier, said that the Indian regulators like the Securities and Exchange Board of India (SEBI) are seasoned and on top of the entire issue. “India's regulators are very, very experienced. They are experts in their domain. So, they are seized of the matter,” said Sitharaman during a press conference after the Reserve Bank of India's central board of directors met for its customary post-Budget meeting in February. 

The Supreme Court had asked SEBI to ensure the protection of the investors’ money after a wipe-out of investors’ wealth. Solicitor General Tushar Mehta, appearing for SEBI, informed the apex court that the market regulator is "on top of the matter".

In the interview at the sidelines of IMF’s Spring meetings in Washington, the minister also spoke about job concerns, the government’s slow progress on privatisation as well as India’s economic challenges. 

She said that the government is making enough efforts to ensure that the economy stays buoyant. Sitharaman, however, said that external factors such as the Ukraine war and OPEC+ output cut are more worrying than internal factors. Speaking on RBI’s rate pause, the minister said that the central bank is keeping a very close eye on the economy, according to the report. 

Sitharaman, speaking about privatisation, said that the idea is not to close down units but to get out of businesses where more equity is not possible. The government’s emphasis is to fill vacant jobs that’s available with the government, she added. 

Also read: 'Whole thing about Adani was overblown by Hindenburg,' says Mobius Capital’s Mark Mobius