The Adani Group, one of India’s largest conglomerates, faces a storm of controversy following bribery allegations. US authorities charged the group’s billionaire chairman, Gautam Adani, and seven others with paying $265 million in bribes to Indian officials. The charges, which include misleading public statements, cast a shadow over the group’s ambitious projects and global reputation.
Parliament Disrupted Over Adani Allegations
India’s parliament witnessed uproar as opposition lawmakers demanded a detailed discussion on the Adani bribery scandal. Mallikarjun Kharge, Congress Party president, emphasized that the allegations could harm India’s global image, urging immediate government action. Despite receiving multiple notices from lawmakers, Vice President Jagdeep Dhankhar suspended parliamentary proceedings, citing procedural issues.
Outside the chambers, youth members of Congress protested, carrying placards demanding Adani’s arrest and linking him to Prime Minister Narendra Modi. Demonstrators clashed with police and were detained, reflecting the intensifying public outcry.
TotalEnergies Halts Investments
The fallout extended internationally as France’s TotalEnergies announced it would freeze further payments to Adani Group ventures. The French company, which holds a 20% stake in Adani Green Energy Ltd, cited the need for clarity on the allegations before resuming investments. Shares of Adani Green Energy plummeted over 7% following the announcement, reflecting investor concerns.
Global Scrutiny of Adani Operations
The US indictment has triggered reviews of Adani’s business operations worldwide. In Kenya, President William Ruto canceled a procurement process involving Adani at the country’s main airport. In Bangladesh, authorities initiated a review of power generation contracts, including those with Adani Power, urging transparency in past dealings.
In India, opposition parties have repeatedly accused Prime Minister Modi of favoritism toward Adani, highlighting their long-standing ties dating back to Modi’s tenure as Gujarat’s chief minister. Both Adani and the government deny these claims, with Modi’s Bharatiya Janata Party asserting that the law will take its course.
Financial Impact on Adani Group
The bribery allegations have significantly impacted Adani’s financial standing. The group’s 10 listed stocks lost approximately $28 billion in market value over two days last week. On Monday, five of these stocks traded in the red, with Adani Green, Adani Energy, and Adani Power suffering losses between 3.5% and 9%.
Global banks have reportedly begun reassessing their exposure to the conglomerate, with some considering temporary halts on fresh credit while maintaining existing loans. Additionally, Adani’s dollar bonds saw a sharp decline in value during Asian trading.
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A Crisis of Confidence
This is not the first crisis for the Adani Group. In 2022, short-seller Hindenburg Research accused the conglomerate of exploiting offshore tax havens, claims that the company denied. However, the current bribery charges have escalated concerns, intensifying calls for transparency and accountability.
As investigations and financial reviews continue, the Adani Group faces mounting pressure to restore trust and mitigate the damage to its global operations and reputation.
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