Kannur (Kerala): Leader of the Opposition, Pinarayi Vijayan, on Saturday confirmed he has approached SEBI and major stock exchanges, demanding an intervention into the Adani Group's plan to offload a 49 per cent stake in the Vizhinjam port project. Vijayan alleged that the multi-billion-dollar move directly breaches the concession agreement signed with the Kerala government.

The controversy follows a recent announcement by Adani Ports and Special Economic Zone (APSEZ) stating that Mediterranean Shipping Company (MSC) would buy a 49 per cent stake in Adani Vizhinjam Port Private Limited (AVPPL) for roughly USD 1.4 billion.

Speaking to journalists, Vijayan asserted that the transaction goes beyond a technical breach, raising significant concerns regarding national security and public interest.

"When all aspects of the matter are examined, it appears that there was a well-planned and premeditated commercial strategy behind these developments," he alleged.

The Opposition leader pointed out that under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, companies are legally mandated to maintain absolute transparency regarding material disclosures.

"However, the facts suggest that these developments were not communicated to SEBI and the concerned authorities in a transparent manner at the appropriate stage. Taking these factors into account, I sent a letter to SEBI as well as to the stock exchange authorities, seeking their intervention in the matter," he said.

The former chief minister claimed that while the Adani Group briefed SEBI on the stake sale, it bypassed the Kerala government entirely, failing to secure the mandatory prior clearance. Pointing to Clause 5.3.1 of the concession pact, Vijayan noted that any transfer of ownership exceeding 25 per cent strictly requires the state’s green light.

"This is not merely a technical issue. The state government has the right to examine the necessity and implications of such a transfer. The question is how the Adani Group is proceeding with this move without following the prescribed procedure," Vijayan added.

Vijayan also directed sharp criticism toward Chief Minister V D Satheesan’s administration for its lack of urgency. He noted that during an Assembly session on July 1, the Chief Minister stated the government had received no formal application regarding the transaction. Vijayan questioned why the state had not yet approached SEBI themselves, citing "undue leniency" in handling the corporate giant.

"The government has not even fulfilled that basic responsibility. There is no sense of urgency and it does not appear willing to raise the issue before SEBI. A certain degree of undue leniency is evident in the handling of the matter," he alleged.

Highlighting that Vizhinjam is Kerala’s premier flagship project funded by taxpayers, Vijayan demanded that public interest be safeguarded. "The money invested in the project belongs to the people of Kerala. The key concern is whether the interests of the people are being adequately protected," he said.

He further challenged Chief Minister Satheesan to clarify conflicting reports on whether a formal letter from Adani had indeed reached the government, warning that silence could fuel suspicions of a backdoor deal.

While maintaining that he holds no objections against MSC—which already operates at the port—Vijayan warned against long-term market risks. "However, acquisition of a significant ownership stake by such a company could gradually lead to a monopolistic structure at the port, discouraging competition and affecting its long-term development," he concluded.


PTI