Adani-Hindenburg row: Banks will never lend on instructions from ‘above’: KP Singh

New Delhi. The business empire of Gautam Adani, once the country’s richest person, is in turmoil following a report by American short selling company Hindenburg Research. However, real estate veteran K.K. P. Singh believes that the Adani developments have not shaken global investors’ confidence in India. He also dismissed speculations that banks had given loans to the Adani group after instructions from ‘above’. The report of Hindenburg Research came on 24 January. Since then, there has been a massive sell-off in the shares of Adani group companies. DLF chairman emeritus KP Singh told PTI in an interview that this is only a temporary setback relating to a corporate group and has not dented investor confidence in India.

However, at the same time, he said that to stay on the growth path, Adani Group needs to increase its capital base and reduce debt. Singh, known for his outspokenness, recalled how a decade and a half ago when his real estate firm DLF was coming out with an initial public offering (IPO), a Canadian company had threatened to bring a report. He told, “At that time we told the Canadian company to do whatever it wants to do. There are some ‘blackmailers’ who bring reports at the time of big share sale.” The Hindenburg Research report came just ahead of the Rs 20,000-crore follow-on public offering (FPO) of Adani Enterprises, the flagship company of Adani Group. Asked whether the Adani-Hindenburg row would affect India as an investment destination, Singh termed it as “absolute nonsense”. He said that India is a very big country, so this ‘story’ will end. Investment will not be affected.” He said that Prime Minister Narendra Modi is a very sensible person and as long as he remains the Prime Minister, India will remain an attractive destination for investment. The Adani group, operating in the apple to airport sector, has called the allegations ‘malicious’, ‘baseless’ and a ‘planned attack on India’.

In three weeks after the report, the market valuation of Adani Group’s listed companies has come down by $125 billion. On reports that banks gave loans to the Adani group at the behest of the Prime Minister, Singh said, “I don’t know about Adani. If anyone thinks that bankers will give loans when asked by the Prime Minister, they are living in a ‘fool’s world’. No bank official would do that.” Citing the example of Chanda Kochhar, former Chief Executive Officer (CEO) of ICICI Bank, he asked whether a banker would do something that is not in accordance with the regulations. Kochhar was arrested on charges of irregularities in loan to Videocon group. The opposition attacks the government on the basis of the Hindenburg report. The Prime Minister has not taken Adani’s name even once since the controversy started, but in his address to Parliament, he had said that the ‘blessings’ of 140 crore people of the country are with him.

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