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Kerala Leader of the Opposition and senior Communist Party of India (Marxist) [CPI(M)] leader Pinarayi Vijayan has urged the Securities and Exchange Board of India (SEBI) to intervene in the Adani Group’s proposed transfer of a 49% stake in Adani Vizhinjam Port Private Limited (AVPPL) to the Switzerland-based Mediterranean Shipping Company (MSC).
In a Facebook post on Saturday, July 4, Pinarayi said he had written to SEBI alleging that the share transfer violates the Vizhinjam port concession agreement and SEBI's disclosure norms. He argued that the Adani Group initiated the process without obtaining the Kerala government’s prior approval, which he said is mandatory under the agreement.
The development comes days after MSC’s terminal arm, Terminal Investment Limited (TiL), announced it would acquire a 49% stake in Adani Vizhinjam Port for USD 1.397 billion (around Rs 12,000 crore). The deal, announced on June 30, has been described by the company as the largest foreign private investment in India's port infrastructure.
Pinarayi also criticised the state government, alleging that it failed to act after learning of the proposed deal. Chief Minister VD Satheesan had earlier said the government came to know about the transaction only through newspaper reports.
In his letter, Pinarayi urged SEBI to seek an explanation from the Adani Group over its application for the share transfer, alleging that the company neither obtained the Kerala government's prior approval nor complied with SEBI’s disclosure requirements. He also urged the market regulator to initiate appropriate action.
“Adani Group had submitted a letter to SEBI seeking approval for the share transfer. The government should have immediately informed SEBI that the company had neither obtained the state government's prior approval for the share transfer, as required under its agreement with the government, nor made complete disclosures,” he wrote.
Pinarayi further argued that SEBI should not be allowed to take a unilateral decision on the matter. “The Opposition will challenge the government's collusion through both legal and political means,” his post said.
Pinarayi also contended that the proposed share transfer violated the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which require material information relating to such transactions to be disclosed to the stock exchanges. According to him, the required disclosures were not made, and the Kerala government failed to exercise due diligence despite knowing about the proposed transaction.
Referring to the concession agreement between the Kerala government and the Adani Group, Pinarayi said Clause 5.3.1 requires the state’s prior approval for any change in ownership. He added that any transfer involving more than 25% of the company's shares, whether individually or collectively, also requires government approval.
Meanwhile, the CPI(M) alleged that the recent removal of IAS officer Divya S Iyer as the Managing Director of Vizhinjam International Seaport Limited was intended to benefit the Adani Group. The party demanded that Chief Minister VD Satheesan explain the reasons for her transfer.