'PM Modi silent on Trump’s threats as he fears U.S. will expose Adani': Rahul Gandhi

August 6, 2025 by News Desk

Congress leader and Leader of Opposition Rahul Gandhi has intensified his criticism of Prime Minister Narendra Modi, linking the PM’s silence over former US President Donald Trump’s recent tariff threats to an ongoing American investigation into the Adani Group.

In a post on X, Gandhi alleged that Modi’s inability to respond to Trump stems from fears that the US probe could expose financial ties between Modi, industrialist Gautam Adani, and alleged dealings involving Russian oil.

“India, please understand: The reason PM Modi cannot stand up to President Trump despite his repeated threats is the ongoing US investigation into Adani. One threat is to expose the financial links between Modi, Adani, and Russian oil deals. Modi’s hands are tied,” Gandhi wrote.

Rahul Gandhi and other opposition leaders have long accused the Modi government of favouring Gautam Adani, pointing to a series of policy decisions and state support that have allegedly helped the Adani Group expand its influence across key sectors. Among the most cited instances is the 2018 decision to allow Adani to take over six major airports despite objections from both the Finance and Civil Aviation Ministries.

At the time, Adani had no prior experience in managing airports. The group’s rapid expansion in the ports and logistics sector has also drawn scrutiny, with several environmental and financial clearances reportedly granted without adequate oversight.

Photographs of Modi and Adani together during official foreign visits have further fueled allegations of cronyism. In 2015, Adani accompanied the Prime Minister on a trip to Australia, where he was pursuing coal deals for his controversial Carmichael mine.

A similar instance occurred in Bangladesh, where a power deal was signed between the Adani Group and the Bangladeshi government shortly after Modi’s state visit. Critics have also raised concerns over Adani’s acquisition of NDTV in 2022, a move viewed as part of a broader trend of silencing critical voices in the Indian media landscape.

The US Department of Justice and Securities and Exchange Commission are investigating the Adani Group under the Foreign Corrupt Practices Act. The probe, which began in 2024, focuses on whether the conglomerate used offshore shell companies to manipulate stock prices, launder funds, and evade taxes. These investigations gained momentum after a 2023 report by US-based Hindenburg Research accused Adani of orchestrating one of the largest corporate frauds in history.

The report claimed that the group used shell entities in Mauritius to artificially inflate its stock value, engaged in fraudulent accounting, and exploited weak regulatory frameworks in India. While Adani has denied all allegations, US regulators are said to have interviewed former employees and sought documents from international financial institutions linked to the company’s global dealings.

Trump recently reignited the tariff debate, accusing India of buying discounted Russian oil and reselling it at a profit on the global market. “India is not only buying massive amounts of Russian oil, they are then selling it on the open market for big profits. Because of this, I will be substantially raising the tariff paid by India to the USA,” Trump wrote on his platform, Truth Social. In response, India’s Ministry of External Affairs defended its energy policy, stating that the country’s purchases are guided by market availability and national interest. “We are not aware of any specifics,” MEA spokesperson Randhir Jaiswal said.

At a press conference, Rahul Gandhi accused the Modi government of making foreign policy decisions that serve private business interests rather than national welfare. He said the government must come clean about the nature of its relationship with the Adani Group. “The real question is: who does Modi work for? The nation, or his corporate friends?” Gandhi asked. As of now, there has been no official response from the Prime Minister’s Office or from the Adani Group regarding the latest allegations.