Indian billionaire Gautam Adani, the chairman of the $143 billion Adani Group, has firmly denied allegations of bribery and fraud after U.S. prosecutors indicted him and seven others in connection with a scheme to bribe Indian officials for power supply contracts. According to the charges, the group was involved in a $265 million bribery operation that aimed to secure deals for Adani Green Energy, a key arm of the conglomerate. However, the group’s CFO, Jugeshinder Singh, has stated that only one contract of Adani Green Energy is implicated, accounting for about 10% of the company’s overall business.

On Wednesday, U.S. authorities filed a sweeping indictment, accusing Adani and his associates of using bribery to influence government officials to win business for Adani Green. This latest controversy comes just over a year after Hindenburg Research published a report alleging financial misconduct within the Adani Group, including improper use of offshore tax havens. While the group has denied all claims, the latest U.S. legal action has put further pressure on the conglomerate, causing a dramatic drop in its stock prices.

Impact on Adani Group’s Business and Stock Market

The charges have had immediate repercussions for Adani Group’s financial standing. Shares in its publicly traded companies have plunged, reflecting growing investor concerns. Some global banks are reportedly considering halting the extension of new credit to the group, which could affect its ongoing and future projects. Additionally, Kenya has canceled two major infrastructure deals worth over $2.5 billion with Adani, further dampening the conglomerate’s prospects.

Singh, in his defense, reiterated that none of Adani Group’s 11 publicly listed companies are implicated in the indictment. He clarified that the bribery charges concern a single contract in Adani Green Energy, one of the group’s renewable energy arms. “This is an isolated incident, and we are confident that it does not reflect the practices of our other businesses,” Singh wrote on X (formerly Twitter).

The Adani Group’s global ambitions have also been thrown into the spotlight, especially as the company operates numerous projects in Africa, Australia, and the Middle East. However, the group now faces heightened scrutiny from regulators and investors alike, following accusations related to misleading U.S. investors about Adani Green’s adherence to anti-bribery and corporate governance standards.

The Role of Sagar Adani and Allegations of Bribery

The U.S. indictment also points to Sagar Adani, a director at Adani Green and the millennial son of Gautam Adani, who allegedly kept track of bribe payments to Indian officials on his mobile phone. This revelation has added a new layer of controversy, as it brings attention to internal practices within the Adani Group.

Singh has acknowledged that the group became aware of the specificity of the U.S. charges only recently, stating that the company had disclosed the possibility of legal scrutiny in its bond offering to U.S. investors in a $750 million deal for 2024. About $175 million of this amount was raised from U.S.-based financial institutions. Singh emphasized that the U.S. indictment contends that the bond offering included “false and misleading assurances” regarding Adani Green’s corporate governance, particularly with respect to transparency and compliance.

Strategic Response and Future Outlook

Despite the mounting allegations, the Adani Group has vowed to defend itself vigorously in court. Singh remarked that the group would provide more detailed comments once it receives legal approval, as the matter is now under judicial review. The charges and their fallout highlight the increasing risks of operating in global markets, particularly for Indian companies that face both geopolitical challenges and heightened regulatory scrutiny.

As the case progresses, the Adani Group’s ability to rebuild trust with investors, customers, and regulators will be crucial to its continued growth. The coming months could determine whether the conglomerate can recover from this setback or whether the legal and financial pressures will take a toll on its global ambitions.

While the U.S. bribery charges represent a significant challenge for Gautam Adani and his group, the ultimate impact on the business will depend on the legal proceedings and the company’s ability to restore its reputation and secure future investments.

(Adapted from TBSNews.net)