Congress Leader Rahul Gandhi Demands JPC Probe into June 3rd & 4th Stock Market RISE AND CRASH

 

Rahul Gandhi Demands JPC Probe into June 3rd & 4th Stock Market Rise and Crash

Congress Leader Sh. Rahul Gandhi has called for a thorough JPC investigation into the significant rise and crash in the equity market on June 4. The market crash, which resulted in the loss of Rs 30 Lac Crores (Almost 360 Billion USD)  in investor wealth, came on the heels of emerging trends from the Lok Sabha election results showing the ruling Bharatiya Janata Party (BJP) significantly trailing behind its projected targets.

On Tuesday, benchmark indices Sensex and Nifty dropped by 8% during intraday trade but managed to reduce losses to 6% by the market close. At 3:30 PM on June 4, the BSE Sensex had plunged 4389.73 points or 5.74% to end at 72,079.05, and the Nifty 50 closed at 21,884.50, down by 1,379.40 points or 5.93%.

Labeling the situation as a scam, Rahul Gandhi accused Prime Minister Narendra Modi and Home Minister Amit Shah of fore-knowledge of the downturn. He alleged that they advised investors to invest heavily before election results. Mr Gandhi is calling for a Joint Parliamentary Committee (JPC) to investigate the stock market crash.

“We demand a JPC into this. We are 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 Union Home Minister gave an indication to buy. So we demand a joint parliamentary committee to investigate this,” Gandhi stated on June 6.

Gandhi also questioned the timing of comments made by top BJP leaders, including Prime Minister Modi, Home Minister Shah, and Finance Minister Nirmala Sitharaman, about the stock market just days before the election results were announced.

“The PM told the country three-four times that the stock market is going to skyrocket. The Home Minister directly said that the stock market will skyrocket on June 4, and people should buy. The same message was given by the Finance Minister,” Gandhi said.

He further suggested that BJP leaders had an idea of the election outcome by June 4 and therefore encouraged investors to invest aggressively before election results.

“This is a broader issue than just the Adani issue. It is connected to the Adani issue, but this is a much broader issue. This directly involves the Prime Minister and the Union Home Minister, who have access to election result data, IB reports, and their own data, advising retail investors to buy stocks,” he added.

Mr Gandhi elaborated, "Intelligence agencies had informed the government that they would secure 200-220 seats. The stock market hit record highs on June 3, and on June 4, it collapsed."

He posed further questions: "Why did the PM and HM give specific investment advice to the 5 crore families investing in the stock market? Is it their job to give investment advice? Second, why were both interviews given to the same media house, owned by the same business group, which is also under SEBI investigation for manipulating the stock market? Third, what is the connection between the BJP, fake exit pollsters, and dubious foreign investors?"

Notably, in interviews last month, PM Modi and HM Shah predicted a strong market rally on June 4, coinciding with the announcement of the election results. Shah urged investors to purchase stocks before June 4, anticipating that the BJP-led National Democratic Alliance (NDA) would win over 400 seats, ensuring a stable Modi government at the Center.

On May 23, PM Modi, in an interview, confidently stated: “I can say with confidence that on June 4, as BJP hits record numbers, the stock market will also hit new record highs.”

He added: “Our government has undertaken maximum reforms and managed the economy with fiscal prudence. The trust the stock market places in us is evident in its remarkable performance over the past decade. When we took office, the Sensex was around 25,000 points. Today, it stands at around 75,000 points, reflecting a historic rise. Recently, we reached a whopping $5 trillion market cap for the first time ever.”

- Lavanya Yadav@Wondernext