Adani’s Market Value Plunges $55 Billion After US Fraud Charges
Indian conglomerate Adani Group has recently faced a significant financial setback, experiencing a loss of around $55 billion in market value following US fraud charges against its top executives, including chairman Gautam Adani, who is considered one of the richest individuals globally. The charges, unveiled by US prosecutors on November 20 in New York, allege that Adani and several senior managers misled international investors in connection to a purported $265 million bribery scheme involving Indian government officials. Adani Group has vehemently denied these accusations, labeling them as baseless.
The company responded to the Department of Justice (DOJ) indictment by highlighting the absence of direct evidence linking Adani executives to bribery payments to Indian officials. The allegations, as stated by the company, are based on discussions or promises of bribes without concrete proof of any actual payments. This legal turmoil has not only affected the company’s finances but also its reputation, resulting in the cancellation of international projects and a substantial decline in market capitalization across its 11 listed companies.
Despite the allegations, Adani Green Energy Ltd, a central entity in the controversy, clarified in a stock exchange filing that key figures such as Gautam Adani, his nephew Sagar Adani, and the company’s managing director Vneet Jaain have not been charged with violating the US Foreign Corrupt Practices Act (FCPA). Instead, they are facing charges related to alleged conspiracy to commit securities fraud, wire fraud, and securities fraud, each carrying potential financial penalties.
Former Indian Attorney General Mukul Rohatgi, along with Rajya Sabha MP and senior advocate Mahesh Jethmalani, expressed skepticism about the credibility and specificity of the allegations during a media briefing. Rohatgi pointed out that the charges primarily focus on individuals other than Adani and his nephew, making it challenging to provide a coherent response. Jethmalani criticized Indian opposition parties for politicizing the issue and raised concerns about the timing and motives behind the DOJ’s actions, referencing former US President Donald Trump’s criticism of the agency.
The allegations against the Adani Group have sparked a political controversy in India, with opposition leaders demanding immediate legal action against Gautam Adani and characterizing the indictment as a severe blow to India’s global reputation. Jethmalani further questioned the DOJ’s intentions, considering the political context surrounding the agency.
