Rahul alleges Modi, Shah 'directly involved' in stock market 'scam', seeks JPC probe

Rahul said retail investors lost Rs 30 lakh crore when stock markets rose after "fake" exit polls and then crashed the day Lok Sabha polls votes were counted on June 4 and this is the "biggest stock market scam" in the country.
Congress leader Rahul Gandhi with party leaders Jairam Ramesh, Pawan Khera, KC Venugopal and others during a press conference, in New Delhi, Thursday, June, 6, 2024.
Congress leader Rahul Gandhi with party leaders Jairam Ramesh, Pawan Khera, KC Venugopal and others during a press conference, in New Delhi, Thursday, June, 6, 2024.

New Delhi | Congress leader Rahul Gandhi Thursday alleged that Prime Minister Narendra Modi and Home Minister Amit Shah were "directly involved" in what he described as the "biggest stock market scam" in which retail investors lost Rs 30 lakh crore after poll results, and demanded a joint parliamentary committee probe into it.

Addressing a press conference here, he also sought an inquiry into the alleged role of the prime minister, home minister and Finance Minister Nirmala Sitharaman in this "scam", claiming they had advised retail investors to buy stock before the results, which is "unprecedented".

Gandhi also alleged that PM Modi and Shah knew how many seats the BJP was winning, but they "artificially" jacked up the stock prices with the help of "fake" exit polls and the markets crashed when the results came out on June 4 leading to huge losses to retail investors.

"The common people of India lost Rs 30 lakh crore in the stock market on June 4...We demand a JPC (Joint Parliamentary Committee) investigation into this biggest-ever stock market scam," the former Congress chief said.

"This is a criminal act and we demand a JPC to investigate the involvement of the prime minister, home minister and finance minister and who are the people who made the money in this 'scam'," he said referring to those behind the exit polls.

"I am saying that people very high up in the BJP have carried out the scam...they had partners who carried out these exit polls. We would like to know if these exit polls were actually carried out, if people were actually sent out, and we would also like to know the methodology of these polls...we would like to understand who these investors are. We have some sense of who these investors are.

"We are not just speaking out of the air, we are confident that if an investigation is done, interesting things will be revealed and we think that the Prime Minister and Home Minister are directly involved in this," he alleged.

"We are absolutely convinced that this is a scam. Somebody has made thousands of crores of rupees at the cost of Indian retail investors, and the Prime Minister and the Home Minister have given an indication to buy, and this is a criminal act. So, we demand today a Joint Parliamentary Committee (JPC) to investigate this," he said.

Gandhi pointed out that when the actual results were way off the mark from the exit poll claims, the market crashed leading to loss of Rs 30 lakh crores to the retail investors.

The former Congress president observed that all this was deliberately and wilfully planned and executed. He claimed that the BJP knew that its seats were not going to be more than 220 from their internal survey and the feedback received from intelligence agencies, but despite that the exit polls were made to show that the BJP was winning a large number of seats.

Besides, he pointed out, the interviews were carried out by the channels "owned by Adani" and asked why did the PM and the home minister need to give investment advice which people are bound to take seriously, which they did, and later suffered huge losses.

Gandhi also posed a set of three questions, asking, "Why did the PM and HM give specific investment advice to the five crore families investing in the stock markets? Is it their job to give investment advice to the people?".

"Why both interviews were given to the same media house owned by the same business group, which is also under SEBI investigations for manipulating stock markets," he also asked.

"What is the connection between the BJP, the fake exit pollsters, and the

Rahul Gandhi showing a chart on stock market fluctuations to media persons.
Rahul Gandhi showing a chart on stock market fluctuations to media persons.

dubious foreign investors, who invested one day before the exit polls were announced and made huge profits, at the cost of five crore families?" Gandhi asked.

He claimed that for the first time we noted that during polls, Prime Minister Modi, Home Minister Shah, Finance Minister Sitharaman commented on the stock market.

"Why did the prime minister and home minister give investment advice to people," Gandhi asked and claimed "BJP leaders had information that exit polls were wrong."

Asked whether he was linking Adani group, Gandhi said this is a broader issue than the Adani issue.

"It is connected to the Adani issue but it is much broader. This is directly the Prime Minister of India and the Home Minister who are privy to data on the actual election results, who have the IB reports, who have their own data, and who are advising retail investors to buy stocks.

"Quite interestingly, this has never happened before that the PM has commented on the stock market. This is happening for the first time when he is saying that the stock market is going to boom," he claimed.

"We are interested in having a JPC to investigate the role of the Prime Minister, the role of the Home Minister, role of BJP members, and also those who have done this fake exit polls and finally we want to understand who are the people, these foreign investors who did these trades," he said.

He also cited the chronology of events in which Amit Shah said on May 13 that "buy shares before June 4th" and on May 19, Modi had said that "stock markets will break records on June 4th".

Rahul conspiring to scare investors, market now growing as Modi govt set to return: BJP

New Delhi | The BJP on Thursday accused Congress leader Rahul Gandhi of conspiring to scare domestic and foreign investors, asserting that the stock market has begun rising as the Prime Minister Narendra Modi-led government is set to return to office for a third consecutive term.

Addressing a press conference after Gandhi alleged a "biggest stock market scam" worth Rs 30 lakh crore and pointed fingers at Modi and Home Minister Amit Shah, Union Minister Piyush Goyal claimed that domestic investors in fact made money while the loss was suffered by foreign investors.

The BJP leader also dismissed as baseless Gandhi's demand for a Joint Parliamentary Committee (JPC) probe into the matter, saying he keeps making useless comments.

Goyal said the Rs 30 lakh crore figure highlighted by Gandhi was a notional amount and did not pertain to trading.

"He (Gandhi) does not understand. That is why people of India do not trust him," Goyal said, citing the big rise in stock market under the BJP government to assert that retail and domestic investors benefitted the most.

"I think Rahul Gandhi should be concerned about the fear of investors as the market crashed when the Congress was doing better than expected. Now, people are confident that the Modi government is coming back, and the market has stabilised and is reclaiming its previous highs," he said.

The trading value was around Rs 6,840 crore, Goyal said and added that when the Congress was seen gaining in seats on the day of the Lok Sabha poll result on June 4, then it fell.

The minister expressed confidence that the reforms envisioned by the government will continue at a time when the country is poised for a bright future. "We are delighted that our allies are progressive and support reforms," Goyal said.

They know what is good for the people of India and that the Modi government has taken the country to new heights, he added.

Former Congress president Gandhi, who returned to the political centrestage after his party's better than expected show in the Lok Sabha poll, had earlier alleged that Modi and Shah were "directly involved" in what he described as the "biggest stock market scam" in which retail investors lost Rs 30 lakh crore, and demanded a JPC probe.

He said stock markets surged after "fake" exit polls and then crashed the day votes for the Lok Sabha polls were counted on June 4.

"The common people of India lost Rs 30 lakh crore in the stock market on June 4...We demand a JPC investigation into this biggest-ever stock market scam," Gandhi said.

Rebutting the allegations, Goyal said Gandhi was desperate after the opposition alliance failed in its bid for power and Modi is set to start his third term.

He is now hatching a conspiracy to scare domestic and foreign investors from putting their money in India when the prime minister is working to make the country the third largest global economy, Goyal said.

When the exit polls were broadcast, it was foreign investors who bought expensive stocks while domestic investors sold. When the market crashed, it was the other way round, he claimed to assert that domestic investors made money.

It is in the nature of markets to go up and down due to various factors and one has to take a long-term view to see how it has performed, he said, noting that its valuation has crossed USD 5 trillion for the first time.

The market cap has now risen to Rs 415 lakh crore from Rs 67 lakh crore when the Congress-led UPA government demitted office in 2014, he said, adding that the valuation of listed public sector firms has gone up by four times.

The share of domestic investors in the market has gone up to 84 per cent from 79 per cent in 10 years and this shows that they are the ones who have benefitted the most under the BJP-led NDA government, he said.

The size of the mutual fund industry has surged to Rs 56 lakh crore from Rs 10 lakh crore in this period, Goyal added. The Modi government is coming back and investors have trust in India's growth story, he said.

Questioned about the comments of Prime Minister Modi and Shah on the stock market movement, Goyal said every party makes claims about its success and the Congress also did so.

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