The Modi Riech
Rise of the State Monopoly Capitalism
The Story of Quid Pro Quo between a Power-Hungry Pracharak and his Crony Capitalists
Dr. Manmohan Singh, a renowned economist, refused to allow corporate interference in government policies beyond a certain level. Capitalists didn't appreciate him for that and only supported those who were willing to go to great lengths to fulfil their business goals.
The story began in 1998 when an RSS Pracharak got a taste of power and position. From being the General Secretary, he manipulated his way to becoming the Chief Minister of Gujarat. To remain in power, he made many compromises: spreading lies, fuelling hate, and selling himself and the state’s resources to crony capitalists who kept him in power in exchange for business deals and government favours, allowing them to mint money round the clock.
By 2012, his collaborators became more ambitious, seeking to capture a larger share of the business pie. They decided to take over the capital of India by making this Pracharak the Prime Minister. They deployed immense resources to build his image as the messiah who could rectify all the country’s perceived ills.
On 26th May 2014, they succeeded in their ambitious plan. The 125-crore population of India voted and gave the Pracharak a full majority in Parliament, swayed by his promises. The electorate dreamed of a Ram Rajya where 1.5 million rupees would land in their accounts, where there would be no income tax, two crore jobs1, free education, doubled farmers' income, an exchange rate of Rs. 50 to $2, cheap fuel, world-class cities, and much more.
So far, so good. People believed they have successfully dethroned a corrupt government and started worshipping the Pracharak, hoping to see him deliver on his promises. But, being duty-bound to his crony friends, he began working on their business expansion plans.
He started by captivating the media and press, then placed his loyalists—trained to serve the interests of cronies—in key positions across financial institutions, regulatory bodies and law enforcement agencies. He worked 18 hours a day to ensure profit-making PSUs were handed over to the chosen ones, stealthily passing bills and changing rules to eliminate competition and stifle complaints.
He created monopolies. As his crony friends grew richer by the second, the common people became poorer by the day. The country's external borrowings multiplied by 300% 2 . Youth remained unemployed, women vulnerable, and children undernourished. He was doing business for his crony friends, not governance for the people who had elected him to power.
His crony friends became some of the world’s richest, but in the process, he ‘enslaved’ himself to even bigger crony capitalist forces.
Adani Enterprises’ Chairperson, Gautam Adani, a very close associate of Pracharak tuned PM, was a school drop-out and had built his empire from a commodities trading business. He went to becoming Asia’s richest person, with ventures spanning ports, power generation, airports, mining, renewables,
1 'Modi promised 2 crore jobs every year... Did he give those jobs?' Kharge slams PM Modi on his guarantee - Business Today
2 India's debt has gone up three times in last 10 years: Cong's Manish Tewari in Lok Sabha | India News - Times of India (indiatimes.com)
media, and cement. Much of the credit for his rise goes to the Pracharak, who bent over backward to make him a champion in the corporate world3.
People started waking up from their nightmare, but many remained in denial, influenced by constant propaganda through social media and mainstream media.
On 24th January 2023, Hindenburg Research, a New York-based company specializing in forensic financial research, published a report accusing Adani Enterprises of inflating the stock prices of its seven listed companies by an average of 819%. The report alleged that the conglomerate used offshore companies to funnel its own funds, with 38 shell entities in Mauritius, Cyprus, the UAE, Singapore, and several Caribbean islands, all controlled by Gautam Adani’s elder brother, Vinod Adani, and close associates.
Adani denied the allegations, but the market reacted with a massive $150 billion selloff in the conglomerate’s stock. The matter was handed over to SEBI for further investigation4.
On 25th August 2023, SEBI submitted its report to the Supreme Court, stating that it had completed the probe and would take appropriate action based on the investigation’s findings5. As a result, Adani stocks bounced back, recovering nearly $120 billion of their market cap.
On 10th August 2024, Hindenburg Research published its second report, this time accusing SEBI Chief Madhabi Puri Buch of having a conflict of interest in the Adani Enterprises case6.
Everyone has been following this case regularly, so there’s no need to delve into the details of the alleged connivance. However, what we need to remember is the following:
The Pracharak, the business expansion partner.
Vinod Adani, the key figure in the Adani Conglomerate.
Madhabi Puri Buch, the SEBI Chief.
Adani Enterprises’ involvement in round-tripping.
What I want to discuss is a different angle of this entire Hindenburg-Adani saga.
So continue reading…..
We are a country of 1.43 billion people, with a rich heritage of intelligence, courage, hard work, godliness, and kindness. We believe in "Vasudhaiva Kutumbakam" and treat our guests like gods... and so on. But the reality is that we are a bunch of idiots who can be fooled repeatedly by false narratives. We derive happiness from others’ misery, and in doing so, we destroy our present and future. That’s why the Mughals ruled us for 800 years, the British for 200 years, and now, the Sangh is ruling us.
We have stopped thinking critically; instead, we consume the hate fed to us through their WhatsApp University and yellow media. Let’s face it: slavery also runs in our blood.
3 Indian billionaire Gautam Adani is now world’s second richest | Today News (livemint.com)
4 Hindenburg-Adani case: Here’s a look back at how much Adani Group stocks fell in January 2024 after Hindenburg report | Stock Market News (livemint.com)
5 Adani-Hindenburg row: SEBI tells Supreme Court it has completed probe | Today News (livemint.com)
6 Hindenburg’s new report alleges Sebi chief, husband owned stakes in offshore firms linked to Adanis | Stock Market News (livemint.com)
Meteoric Rise of the Crony Capitalist
India gained its independence after a long struggle, marked by the sacrifices of sweat and blood. Our country was blessed with highly intelligent and visionary leaders who provided us with a system designed to withstand both internal and external conspiracies.
While our visionary leaders were busy building the nation, the Royal Secret Services, which once reported to the British Raj against our independence struggle—now known as the Rashtriya Swayamsevak Sangh (RSS)—was building its own organization. Today, the RSS has placed its people in key decision-making positions, including the Prime Minister’s Office (PMO7.
Prime Minister Narendra Modi is working extra hours to ensure that the system continues to operate in favour of the corporate cartel. He does this through hand-picked loyalists in the PMO and the extended bureaucracy, who are willing to follow any orders.
Don’t believe me? Continue reading.
After winning the Gujarat Assembly elections in 2012 and becoming the Chief Minister for the third time, Modi began his campaign for the 2014 Lok Sabha elections. By then, he had become the blue- eyed boy of the Gujarat business cartel. As Modi gained momentum, the corporate cartel pumped in money, manpower, media coverage, and essential backend support, building his image and positioning him as the next big thing in India’s political history.
He went on to win the 2014, 2019, and 2024 Lok Sabha elections. Let’s not debate the electoral manipulations, because there’s something much bigger that we need to discuss.
Adani Enterprises began acquiring every profit-making PSU, government and non-government establishments, and took over ports, airports, roads, railways, shipping, dredging, power production and supply, cement, defence manufacturing, food storage, the retail sector, and more.
Modi helped by bending existing rules, passing new laws, using government agencies like regulatory bodies and law enforcement, influencing decisions by placing pliable individuals in key positions, and ensuring that the doors of banks, particularly public sector banks, were always open to Adani—as if making Adani rich was the sole purpose of the Indian government.
Every major contract, every possible subsidy, every possible exemption, and every possible policy was designated, designed, and dedicated to Adani8.
Now, talking about Hindenburg Report 2.0, why is Hindenburg targeting SEBI Chairperson Madhabi Puri Buch? Why is she under scrutiny in this Adani-Hindenburg saga? Is Hindenburg targeting the Indian economy, as the BJP suggests? Let’s consider the following points:
Madhabi Puri Buch completed her MBA from IIM Ahmedabad.
She joined ICICI Bank Ltd and worked there for 17 years, serving as Executive Director, Managing Director, and CEO of ICICI Securities from February 2009 to 2011.
In 2011, she left ICICI and moved to Singapore, joining Global Pacific Capital LLP9.
It is noteworthy that individuals like Ketan Patel (co-founder and CEO of GPC LLP), Akshaya Prasad (formerly with Goldman Sachs), Shourya Doval (son of NSA Ajit Doval), Ajai Kumar (former MD of
7 Modi, Bhagwat, RSS, BJP — A recasting of equations (deccanherald.com)
8 A Friend Indeed: Adani & Modi | The AIDEM
9 Madhabi Puri-Buch to join Greater Pacific Capital - The Economic Times (indiatimes.com)
Corporation Bank), Navin Paul (E-Mobility expert), Nitin Desai, former Chief Information Commissioner Rajiv Mathur, and many other Indian-origin experts in different sectors also hold important positions at Global Pacific Capital10.
Was this just a coincidence? It doesn’t seem so. Was it part of a larger plan? Most likely. Was Madhabi Puri Buch strategically placed in the critical role of SEBI Chairperson by an all-powerful business cartel? Quite possibly, otherwise, why would someone leave a top management position at ICICI?
Now, here are few interesting aspects to consider:
In 2010, Vinod Adani set up Asset Trade and Investment Pvt Ltd.
By May 2012, Asset Trade moved $100 million to the Global Opportunities Fund.
In 2013, Asset Trade subscribed to the Global Dynamic Opportunities Fund.
In 2013, Madhabi Puri Buch and her husband Dhaval Buch registered Agora Partners in Singapore.
In 2015, she invested in the Global Dynamic Opportunities Fund on the recommendation of her childhood friend, Anil Ahuja11.
The Global Dynamic Opportunities Fund is a subsidiary of the Global Opportunities Fund.
The Global Dynamic Opportunities Fund started the IPE Plus 1 Fund, operated by IIFL Capital Pte Ltd.
Anil Ahuja was a director at Adani Enterprises until 2017 and later became Chief Investment Officer (CIO) of the IPE Plus 1 Fund.
In 2017, Madhabi Puri Buch transferred her assets to her husband, Dhaval Buch.
She joined SEBI as a board member through lateral entry.
Blackstone, REITs, Adani Dharavi Rehabilitation Project & Bill Gates
In June 2014, soon after Narendra Modi became Prime Minister, new rules were established for governing Real Estate Investment Trusts (REITs), including provisions for listing such REITs on the stock exchange12. Blackstone, a premier global investment manager based in the USA, had significant property holdings in India and emerged as the biggest beneficiary of these new regulations. By early 2019, Blackstone received approval to list the first REIT in India13.
Blackstone’s founder and CEO, Stephen A. Schwarzman, is a close friend of Donald J. Trump. Blackstone has a history of engaging with international leaders who have controversial records14. Now, consider this notable sequence of events starting from 2019:
June 2019: Dhaval Buch is appointed as Senior Advisor at Blackstone.
22 Sep 2019: "Howdy Modi" event in Houston, Texas, USA.
21 Oct 2019: Maharashtra Assembly Elections.
23 Nov 2019: Devendra Fadnavis is sworn in as Chief Minister of Maharashtra in the early hours.
10 Greater Pacific Capital | Leadership
11 Hindenburg new report: Madhabi Puri Buch and Dhaval Buch had invested in the same complex nested structure that was used by Vinod Adani, alleges Hindenburg (moneycontrol.com)
12 Blackstone, others gear up to list REITs as India finalises rules (livemint.com)
13 Report: Blackstone-backed Indian REIT gets regulatory approval to list | S&P Global Market Intelligence (spglobal.com)
14 Trump, Kushner, Russia — and the Blackstone Mystery - WhoWhatWhy
28 Nov 2019: Uddhav Thackeray is sworn in as the 18th Chief Minister of Maharashtra.
25 Feb 2020: Trump visits India for the "Namaste Trump" event.
24 Mar 2020: Nationwide lockdown in India due to the COVID-19 pandemic.
Bill Gates leads vaccine development and testing efforts. There were discussions that he intended to test vaccines in the Dharavi slum of Mumbai.
Fortunately, Uddhav Thackeray was in charge at the time.
Oct 2020: The Maha Vikas Aghadi government led by Uddhav Thackeray cancels the Dharavi Slum Development project offer.
Nov 2020: Joe Biden wins the U.S. presidential election.
Jan 2021: Bill Gates' Cascade Investment partners with Blackstone Group to take over Signature Aviation.
Jan 2021: India begins administering the COVID-19 vaccine.
Mar 2022: Madhabi Puri Buch is appointed SEBI Chairperson, the first-ever through lateral entry.
Gautam Adani joins the elite $100 billion club of the world's richest individuals.
30 Jun 2022: Uddhav Thackeray resigns, and Eknath Shinde is sworn in as Chief Minister of Maharashtra.
Nov 2022: Adani Group wins the Dharavi Rehabilitation Project bid, committing to invest USD
1.5 billion in the project15. (Details of the wheeling and dealing are covered in subsequent sections.)
24 Jan 2023: Hindenburg Report 1.0 is published.
The Indian stock market nosedives, with Adani stocks losing up to 80% of their value.
SEBI, led by Chairperson Madhabi Puri Buch, begins investigating Adani investors, including the Emerging India Focus Fund and the EM Resurgent Fund, whose declared beneficial owner is Mauritius-based Trident Trust, administered by the Global Opportunities Fund.
This conflict of interest related to the Global Opportunities Fund16 was potentially never disclosed to the honourable Supreme Court.
In 2014, Adani had a net worth of $5 billion. However, at one point, he became the world’s second- richest person before the Hindenburg report was published. Adani was on an aggressive expansion spree and needed substantial funds for his overly ambitious business ventures. SEBI's chief reportedly aided him in listing all his companies in the Nifty50 index, effectively bending the rules to favour the Adani Group. This gave Adani an undue advantage, as Nifty50 became heavily populated with his companies.
Adani is accused of "spiking" his own stocks by pumping bank-borrowed money into the stock market, artificially inflating the value of his shares17. Modi allegedly compelled Life Insurance Corporation of India (LIC)18, mutual funds, public sector undertakings (PSUs), and banks to invest in Adani Group companies. These artificially inflated shares were then pledged to secure further loans from banks.
15 Adani Group to begin Dharavi redevelopment with Rs 12,500 cr investment | Company News - Business Standard (business-standard.com)
16 Sebi chief had stake in obscure offshore entities used by Adani Group: Hindenburg - Times of India (indiatimes.com)
17 Explained | Decoding the OCCRP’s Adani report - The Hindu
18 Exposure of PSU Insurance companies to Adani Group less than 1%: Data, ET BFSI (indiatimes.com)
When the Hindenburg 1.0 report exposed the Adani stock market scam, Modi reportedly did everything within his power to mitigate the fallout. This raises the question: Whose money was Adani using for round-tripping and manipulating his own stocks? Let's delve into the "Modani" game.
Thanks to Modi, Adani secured a power supply contract with Bangladesh and a power production contract in Sri Lanka. For now, let’s focus on the Bangladesh-Adani power supply agreement. In 2015, Modi amended the Land Border Agreement with Bangladesh, agreeing to give away 111 enclaves amounting to 17,161 acres of Indian land in exchange for 51 enclaves, totalling about 7,110 acres.
Over the last eight years, India has extended three Lines of Credit (LOCs) worth $8 billion and provided additional grant assistance for various infrastructural projects in Bangladesh. But why such generosity19? India is already spending 24% of its union budget to service the interest on its external borrowings. Can India afford such extravagance? Not really.
Anything for Adani
Adani secured a 1,496 MW power supply contract from Bangladesh at an astonishing rate of Tk 14.02 per unit for 25 years. Besides the exorbitant per-unit price, Bangladesh is also obligated to pay an annual capacity maintenance fee of $450 million to Adani. To justify this steep price, Adani allegedly presented overvalued invoices for machinery and coal imports.
It's known that $32.6 billion worth of power plant and transmission machinery was imported by India. Substandard coal from Indonesia was allegedly reclassified as high-grade coal by the time it reached India. The proceeds from these transactions were routed through offshore companies controlled by Vinod Adani20.
Bangladesh Coup Impact
Bangladesh was purchasing over $1 billion worth of power annually from Adani's exclusive Export Oriented Unit (EoU) in Godda, amounting to approximately $90 million every month. Earlier this year, the Bank of Bangladesh cleared a $1.2 billion payment to Adani. However, following the unrest and military coup, Sheikh Hasina resigned and fled Bangladesh, directly impacting Adani’s EoU operations.
In response, Modi, often referred to as "the magician," swiftly amended the rules to allow Adani to sell the power originally destined for Bangladesh in Indian domestic markets21. This exemplifies the influence and power of the Modani Nexus.
Dharavi Rehabilitation Project (DRP) Chronology
After Eknath Shinde became Chief Minister of Maharashtra, the BJP attempted to persuade him to approve the DRP. However, knowing why Uddhav Thackeray had previously cancelled the proposal, Shinde was hesitant to finalize the deal. Meanwhile, Madhabi Puri Buch was actively aiding Adani's financial ascent by modifying Real Estate Investment Trusts (REITs) legislation to benefit Blackstone and promoting REITs aggressively22.
19 Fourfold rise in India’s Lines of Credit for neighbours since 2014: Data (newindianexpress.com)
20 Judicial rulings stymie probe into Adani over-invoicing allegations - Adani Watch
21 Adani now allowed to sell Bangladesh-bound power in India after govt amends rules - Times of India (indiatimes.com)
22 New REITs regulations by SEBI is a game changer: 7 ways how it can help fractional real estate investors - The Economic Times (indiatimes.com)
The delay in the Dharavi project likely did not sit well with Adani's influential backers. In response, Adani met with his long-time friend, NCP chief Sharad Pawar. On January 24, 2023, the Hindenburg Report was published, putting both Adani and Modi under intense scrutiny.
To ensure the DRP moved forward, Modi kept pressure on the Eknath Shinde government through the looming threat of disqualification, insisting that Shinde deliver on the project. On February 17, 2023, Uddhav Thackeray's Shiv Sena lost its party symbol, marking the beginning of a succession battle within the NCP. Sharad Pawar chose his daughter, Supriya Sule, over his nephew, Ajit Pawar, leading to internal strife.
On July 2, 2023, Ajit Pawar took oath as Deputy Chief Minister of Maharashtra. Just days later, on July 15, 2023, the Dharavi Project received its final approvals, establishing an 80-20 partnership between Adani Realty and the Maharashtra Government. Of the two qualified bidders, Adani Realty emerged as the highest, quoting Rs. 5,069 crores—an amount notably higher than the second bidder, DLF, which quoted Rs. 2,025 crores, nearly 50% less.
Details of Dharavi Project:
Total Project cost: $3 billion
Total land 200 hectares or 590 acres.
Total population 1million approx.
Total Project completion time 17years.
Housing and Rehabilitation time 7 years.
Size of the housing proposed 350 sqft per unit
Dharavi, Asia’s largest and most densely populated slum, is situated in the heart of Mumbai. Despite its challenging conditions, Dharavi's residents produce leather goods, textiles, and pottery, generating an estimated annual revenue of roughly $1 billion 23 . This economic activity is one reason why relocating its residents is not a straightforward task. Relocation requires careful planning, negotiation, and execution, as the residents need to be provided with alternate accommodation in nearby areas before they agree to vacate Dharavi.
To facilitate the relocation, Adani Realty has requested 552 acres of land in Mumbai's eastern suburbs. This includes 21 acres at Mother Dairy Kurla, 200 acres in Deonar, 250 acres of salt pan land in Bhandup-Kanjurmarg, and 64 acres in Mulund owned by the BMC24. If necessary, Adani Realty may seek additional land, with the total requirement expected to be no more than 800 acres.
The Modi government has volunteered to construct houses under the Prime Minister Awas Yojana, offering homes either for sale at Rs. 2.5 lakh or on a rental basis to Dharavi's residents. Essentially, Adani Realty stands to gain 590 acres in Dharavi, plus an additional 552 to 800 acres in Mumbai's eastern suburbs for a period of 7 to 17 years.
23 Mumbai’s Dharavi slum: $1 billion turnover, 12000 SMEs SMEs, 2.5 lakh workers - SME News | The Financial Express
24 Dharavi redevelopment project: Adani Realty seeks extra 552 acres in eastern suburbs | Mumbai News - The Indian Express
Wait, it’s not over yet—here comes the twist.
REITs are reportedly in talks with Adani Realty to take over its towers in the Bandra Kurla Complex25. While the details remain unclear, Hindenburg has already released its second report and hinted at a possible third report in the pipeline.
Blackstone’s ambitious expansion in India has raised concerns in the United States. The appointment of Dhaval Buch as a senior advisor at Blackstone, along with Blackstone’s association with the Adani Group and various entities regulated by SEBI26, may draw scrutiny from the U.S. government. The U.S. has stringent laws against organizations that bribe or influence foreign public officials for business gains27.
Has Adani bitten off more than he can chew? Has 100% FDI put Indian markets in danger? Has Modi borrowed beyond permissible limits or beyond India’s financial capacity? Has Modi played into the hands of Blackstone and REITs? The Modi government is seen as corporate-controlled, yet Nagpur believes the RSS is in command.
Whatever may be their equation, the gap between the rich and the poor is widening with every passing second. With 63% of the population surviving on free food grains, is India truly progressing?
Ask yourself. Wake up before it’s too late.
25 Blackstone in Talks to Acquire Adani Realty's BKC Office Tower for Rs 2,000 Cr (constructionworld.in)
26 Hindenburg Saga: SEBI chief Madhabi Puri-Buch's Blackstone connection raises new questions (dnaindia.com)
27 The concept of the foreign public official under the USA’s Foreign Corrupt Practices Act (lickslegal.com)
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