Thu Nov 21 13:28:19 UTC 2024: ## Adani Group Faces US Bribery Indictment, Shares Plummet

**Mumbai, India –** The Adani Group is facing a major setback after the US Department of Justice (DOJ) and the US Securities and Exchange Commission (SEC) filed a criminal indictment and civil complaint alleging a massive bribery scheme. Gautam Adani, chairman of the Adani Group, and his nephew, Sagar Adani, are among eight individuals indicted, accused of bribing Indian government officials to secure solar energy contracts. Reuters reports that arrest warrants have been issued in the US for both Adani and his nephew.

The alleged bribery involves over $250 million in payments to secure contracts, allegedly including deals with Andhra Pradesh’s power distribution companies (DISCOMs) and potentially implicating former Chief Minister Y.S. Jagan Mohan Reddy. The Adani Group denies the allegations, calling them baseless and stating that the defendants are presumed innocent until proven guilty.

The news sent shockwaves through the Indian stock market. On November 21st, Adani Group stocks experienced a dramatic plunge. Adani Enterprises saw a 22.6% drop, while other Adani companies also suffered significant losses. The group’s overall valuation plummeted by approximately ₹2.5 lakh crore (approximately $30 billion USD). The Nifty PSU Bank index also recorded its biggest fall in five months, dropping nearly 5%, with SBI, BOB, and PNB shares particularly affected.

The fallout extends beyond the stock market. Protests erupted in Delhi, with the NSUI staging a demonstration against Gautam Adani. Furthermore, several major Indian banks, which hold significant investments in Adani Group companies, are facing potential losses. Moody’s has downgraded the credit outlook for Adani Group companies to negative, citing concerns over their liquidity and governance.

The controversy has sparked widespread political debate. Congress President Mallikarjun Kharge criticized the alleged unethical business practices and called for a thorough investigation. Rahul Gandhi also demanded the arrest of Gautam Adani. While some analysts remain cautious, awaiting the outcome of the US legal proceedings, the accusations have undoubtedly dealt a severe blow to the Adani Group’s reputation and financial stability. The Adani Group has also cancelled $600 million worth of bonds in response to the indictment.

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