Thu Nov 21 14:43:39 UTC 2024: ## Adani Group Faces US Bribery Charges, Shares Plummet

**Mumbai, India (November 21, 2024)** – The Adani Group is facing a major crisis following accusations of bribery by the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC). The agencies allege that the conglomerate paid over $250 million in bribes to Indian government officials to secure solar energy contracts. A New York grand jury has reportedly issued arrest warrants for Gautam Adani and his nephew, Sagar Adani, in connection with the alleged scheme, according to Reuters.

The charges sent shockwaves through the Indian markets. Shares of Adani Group companies experienced a dramatic plunge on November 21st, with Adani Enterprises losing 22.6% of its value. Other Adani companies also suffered significant losses, leading to an estimated ₹2.5 lakh crore (approximately $30 billion USD) drop in the group’s overall valuation. The Nifty PSU Bank index also saw its worst decline in five months, falling nearly 5%, with SBI, BOB, and PNB experiencing the most substantial losses. This is likely due to the significant exposure several Indian public sector banks have to Adani Group debt.

Kenya has responded to the allegations by cancelling a $70 million power transmission deal with the Adani Group.

The Adani Group has vehemently denied the allegations, calling them baseless and stating that it will pursue all available legal options. The group emphasized that the charges remain allegations until proven in court.

The controversy has sparked widespread political reaction. Congress president Mallikarjun Kharge criticized the Modi government for allegedly promoting such unethical business practices, demanding a thorough investigation. Rahul Gandhi called for the immediate arrest of Gautam Adani.

Rating agency Moody’s has downgraded the credit outlook for Adani Group companies to negative, citing concerns about the group’s access to capital and governance practices. Despite some voices downplaying the immediate impact, the situation remains highly volatile and continues to unfold. The long-term consequences of these accusations for the Adani Group and the Indian economy remain to be seen.

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