Adani’s Bribery Scandal! SEC Charges, Major Fallout & Adani’s Stand

Last week, on 20 November 2024, the US Securities Exchange Commission (SEC) accused Indias richest business tycoon, Gautam Adani, and seven other members of being involved in a scheme to pay bribes of $265 million to Indian officials to secure power-supply deals and mislead U.S. investors. The U.S. Securities and Exchange Commission has issued an arrest warrant to Indian billionaire Gautam Adani.

Adani Group's Position

In a statement, Adani Green stated that “these directors have been charged on three counts in the criminal indictment” for alleged “securities fraud conspiracy, alleged wire fraud conspiracy, and alleged securities fraud.”

The Adani Group has denied the accusations in the U.S. indictment as baseless and said it will seek all legal recourse.

Impact of US Allegations on Adani Group

According to the group, Adani's 11 listed companies have lost about $55 billion in market capitalisation after this US allegation.

• William Ruto, the president of Kenya, declared to the world on November 21 that all infrastructure contracts with the Adani Group would be immediately cancelled.

• Until the accusations are settled, French oil giant TotalEnergies has declared that it will not make any more investments in Adani Group enterprises.
• The US International Development Finance Corporation has started to reconsider its choice to provide $553 million to a port project in Sri Lanka that was supported by the Adani Group. They are “actively assessing the ramifications” of the accusations, according to an agency official.
• Bangladesh's caretaker government, headed by Mohammad Yunus, has formed a review committee that has proposed hiring an inquiry agency to look into power agreements inked by the government of former Prime Minister Sheikh Hasina, including one with Adani Power.
• Andhra Pradesh, India may be scrapping its electricity contract with Adani.
• Telangana, India Chief Minister Reddy refused to accept a Rs 100 crore donation from Adani Group for Skills University.

Adani's Controversy in Indian Parliament

The Winter Session of Indian Parliament began on November 25. The Adani controversy was one of the primary topics discussed during this winter session. On the first day, legislators raised the topic of suspected misconduct in the Adani Group.

The opposition has demanded a debate in both houses of Parliament on the Adani bribery case. The House‘s proceedings were adjourned for two days. On the third day, both houses of India’s parliament were temporarily suspended within minutes of opening on Thursday to examine the Adani problem.

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