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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Rahul Gandhi called the June 4, 2024 market fall a “biggest-ever stock market scam” and sought a parliamentary inquiry. That was a political allegation, not an established finding by a regulator or court. The controversy centered on pre-election remarks by Prime Minister Narendra Modi and then Home Minister Amit Shah, record market levels after exit polls, and a sharp reversal when the election result became clear.
What did Modi and Shah say about the market?
According to Scroll’s account of their NDTV interviews, Shah spoke first. On May 13, 2024, he said: “Stock market crashes should not be linked with elections, but even if such a rumour has been spread, I suggest that you buy [shares] before June 4.” He added: “It will shoot up.”
On May 19, Modi forecast a sharp rise around the election-result week: “On June 4, the day of the Lok Sabha election results, you will see…in that week, all the stock market programmers will get tired.” These are remarks as quoted by Scroll; the report attributes them to the politicians’ NDTV interviews.
Gandhi later questioned why the prime minister and home minister had offered specific investment advice to market participants. His objection was not simply that the market fell: he argued that the public remarks, the subsequent market moves, and the scale of the reversal warranted investigation.
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What happened to Indian markets around the result?
Exit polls were released after voting ended on June 1. Most predicted more than 350 seats for the BJP-led National Democratic Alliance, Scroll reported. Indian markets reached record levels on June 3 after those predictions. Congress treated that rise as part of the sequence it wanted investigated; the timing alone does not establish that the remarks or polls caused the market move.
On June 4, election results showed that the BJP would need allies to retain power. The Sensex and Nifty 50 then recorded steep closing declines. Scroll reported the index-point moves, while the Finance Ministry later gave rounded percentage declines in a parliamentary reply.
| Indian market measure | June 4, 2024 close | What the figure measures |
|---|---|---|
| BSE Sensex | Down 4,389.73 points, or 5.74%, to 72,079.05 | Closing move reported by Scroll; the Finance Ministry later described the decline as 5.7%. |
| Nifty 50 | Down 1,379.40 points, or 5.93%, to 21,884.50 | Closing move reported by Scroll; the Finance Ministry later described the decline as 5.9%. |
The point and percentage changes describe the indices’ closing moves, not a verified rupee amount lost by every investor. Gandhi alleged that investors lost ₹30 lakh crore on June 4, according to Scroll. That figure is his political claim; it is not a loss amount established by the reported index data or an official finding.
What exactly did Congress allege, and how did the BJP respond?
On June 6, Gandhi asked: “Why did the prime minister and home minister give specific investment advice to the 5 crore families investing in the stock markets?” He also asked whether giving such advice was their job and called for a Joint Parliamentary Committee (JPC) investigation. His description of the episode as the “biggest-ever stock market scam” was an allegation and a demand for scrutiny—not a conclusion reached by SEBI, a court, or the government.
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Scan for outdated or missing drivers - takes under a minuteDriver Scan →Repair Windows errors before they cause bigger problemsFix Now →BJP leader Piyush Goyal rejected Gandhi’s charge, saying: “Perhaps Rahul Gandhi has still not overcome the Opposition’s defeat in the Lok Sabha elections. Now he is conspiring to mislead market investors.” The political dispute therefore involved competing claims: Congress argued that the sequence called for an inquiry; the BJP accused Gandhi of misleading investors.
What did the government tell Parliament about SEBI?
In a written Rajya Sabha answer on July 30, 2024, the Ministry of Finance said SEBI had received representations about the market movements, but added: “Though SEBI has received representations on the above stock market movements, no specific information on any unfair trading has been provided.” The government’s reply also described SEBI’s general surveillance and enforcement functions.
The answer records what the government said had been provided to SEBI at that time. It is not a final finding that every allegation was investigated and disproved, nor does the absence of specific information in the reply prove that wrongdoing occurred. The cited record does not establish coordination, identify who profited, or provide a regulator’s or court’s conclusion on Gandhi’s broader allegation.
The same Finance Ministry answer reported that, by July 24, 2024, the Sensex and Nifty 50 had risen 11.2% and 11.6%, respectively, compared with June 4. Those later index gains provide a subsequent market comparison; they do not resolve whether any trading was unfair.
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Was the Supreme Court ruling about Gandhi’s allegation?
No. The Supreme Court decision often mentioned alongside the controversy concerned a separate public-interest litigation seeking an investigation into media houses over exit-poll broadcasts. Scroll reported that the bench dismissed that petition on September 6, 2024, calling it a “political interest litigation” and saying the Election Commission would handle the matter. Chief Justice DY Chandrachud said: “The government is already elected now,” and, “Let us now close the saga of what happens during elections and let us now get on with governance in the country.”
That case concerned exit-poll broadcasts, not whether Modi’s or Shah’s remarks were improper or whether a stock-market scam took place. The dismissal was not a judicial ruling on Congress’s allegation against the two politicians.
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