The Congress on Tuesday said Prime Minister Narendra Modi first helped his friend Gautam Adani’s businesses and then protected him from law-enforcing agencies, expressing the fear that India’s transition to “kleptocracy” would be complete if the group was let off without facing any consequences.

The Opposition warning coincides with suggestions that the Securities and Exchange Board of India (Sebi), which launched investigations after the US-based Hindenburg Research alleged unethical practices by the Adani group, has characterised the alleged violations as “technical” that would attract no more than a monetary penalty.

The Adani group denies any wrongdoing.

Congress communications chief Jairam Ramesh said in a statement on Tuesday: “There has been a spate of news reports (perhaps more accurately termed 'leaks') on the Supreme Court-mandated Sebi investigation of the Adani MegaScam. If these reports are correct and Sebi is planning to let off Adani with token fines for ‘technical violations’, then India’s transition to a kleptocracy will be complete.”

“Kleptocracy” is a form of government in which the leaders use political power to steal money and resources from the country they are supposed to govern.

The Opposition has been ceaselessly attacking the Modi government for allegedly conspiring to destroy democracy — crony capitalism is one of the main charges, apart from communalism.

The Congress has alleged widespread corruption, misuse of political power and wanton violation of rules through its 100 questions on the Adani affairs.

On Tuesday, Ramesh said: “At the 9th G20 meeting held in Brisbane back in November 2014, Modi had called for cooperation between nations ‘to eliminate safe havens for economic offenders’, to ‘track down and unconditionally extradite money launderers’ and to ‘break down the web of complex international regulations and excessive banking secrecy that hide the corrupt and their deeds’. Yet he has done all he can to protect his corrupt friends and their misdeeds.”

The Congress leader added: “The Prime Minister’s pet agencies are investigating entities that shorted Adani shares in January 2023 rather than the far more serious charges of money-laundering and round-tripping that have been made against the Adani group. The message is clear: India’s institutions will be rendered toothless while its investigative agencies are used only to protect the Prime Minister’s close friends.”

Arguing that at no point has Sebi asked the Enforcement Directorate (ED) or the CBI to take further action against the Adanis, Ramesh said: “To quote the Supreme Court’s Expert Committee on the Adani MegaScam: ‘The securities market regulator suspects wrongdoing'. This, when these very same agencies have been widely used to harass Opposition parties and non-BJP state governments. If any further evidence was needed to show that India’s once-proud institutions now face capture, it is evident now.”

Ramesh further said: “Rather than compromised institutions, only a JPC (joint parliamentary committee) can investigate the full extent of the Adani MegaScam, and look for answers to questions such as from where the Rs 20,000 crore of opaque foreign funds have flowed into Adani companies, what the true financial relationship is between Gautam and Vinod Adani and how Modi has personally facilitated Adani’s businesses in India and abroad by changing laws, rules and regulations to enrich his close friends.”

While Modi has ferociously condemned the Opposition parties for corruption, his failure to conduct a fair probe into the Adani affairs has triggered fears of India being transformed into a kleptocracy.