Rahul Gandhi Demands JPC to Examine Modi, Shah’s Role in ‘Stock Market Scam’ in 2024

Rahul Gandhi Seeks JPC Probe Into 2024 Stock Market Crash

Congress leader Rahul Gandhi demanded a Joint Parliamentary Committee investigation into the sharp rise in the Indian stock market before the 2024 Lok Sabha election results and the subsequent crash on June 4, 2024.

Speaking at a press conference on June 6, 2024, Gandhi alleged that Prime Minister Narendra Modi and Union Home Minister Amit Shah had given investment-related comments shortly before the election results and questioned whether their statements influenced investors.

What Happened on June 4, 2024?

The Indian stock market experienced a sharp fall on June 4, 2024, as election results showed that the BJP-led NDA would not secure the overwhelming majority that exit polls had projected.

The Sensex fell nearly 6% during the session, while the decline wiped out an estimated ₹30 lakh crore to ₹31 lakh crore in market capitalisation. Gandhi referred to the loss as evidence of the scale of the episode.

Rahul Gandhi’s Allegations Against Modi and Shah

Gandhi alleged that Modi and Shah had encouraged people to invest in the stock market ahead of June 4. He cited comments in which the leaders had spoken positively about the market and questioned why senior political leaders were giving such investment-related messages during an election campaign.

Gandhi also alleged that the BJP leadership had access to internal and intelligence assessments that differed from the optimistic exit-poll projections. He argued that these circumstances warranted a parliamentary investigation.

Why Did Gandhi Demand a JPC?

According to Gandhi, a JPC should examine several issues, including:

• The comments made by Modi, Shah and then Finance Minister Nirmala Sitharaman about the stock market.

• The timing of those statements before the June 4 election results.

• The role of exit polls in the market's pre-result rally.

• Whether any investors or groups benefited from the subsequent market movements.

• The alleged connection between political statements, exit-poll projections and market activity.

BJP Rejects Rahul Gandhi’s Allegations

The BJP rejected Gandhi’s allegations. Senior BJP leader Piyush Goyal described the claims as baseless and accused Gandhi of attempting to mislead investors.

The BJP also disputed Gandhi’s description of the market decline as a ₹30 lakh crore loss to retail investors, arguing that the figure represented a change in market valuation rather than a direct cash loss suffered by investors.

Stock Market Movement and Election Results

The market had reached record levels on June 3, 2024, following the release of exit-poll projections that indicated a strong performance by the BJP-led alliance.

On June 4, the actual election results produced a different political outcome from the expectations reflected in several exit polls, and the market fell sharply. Gandhi linked the sequence of events to his demand for an investigation, while the BJP rejected that interpretation.

What the Proposed JPC Would Examine

Gandhi said a parliamentary committee should investigate the role of senior political leaders, exit-poll organisations and investors who may have benefited from the market movements.

His demand was made as part of the political debate following the 2024 Lok Sabha election results. The allegations remain claims made by Gandhi and do not by themselves establish that the market crash was the result of a coordinated scam.

Key Takeaways

• Rahul Gandhi demanded a JPC probe into the June 4, 2024 stock market crash.

• He alleged that PM Narendra Modi and Home Minister Amit Shah’s pre-election comments required investigation.

• Gandhi described the episode as a major stock market scam.

• The June 4 market fall followed record highs on June 3 after exit polls were released.

• The BJP rejected Gandhi’s allegations and disputed his interpretation of the market losses.

• No conclusion that the crash was caused by a coordinated scam should be drawn solely from these political allegations.