Thu Nov 21 07:37:15 UTC 2024: ## Adani Indicted in US on $250 Million Bribery Charges; Stocks Plummet

**Mumbai, India –** Billionaire Gautam Adani and several associates face criminal charges in the US for allegedly orchestrating a $250 million bribery scheme to secure lucrative solar energy contracts in India. The indictment, unsealed Thursday, sent shockwaves through the Adani Group, causing a dramatic $22 billion plunge in the conglomerate’s market value.

US prosecutors allege that Adani, his nephew Sagar Adani, and other executives paid bribes to Indian government officials in Odisha, Jammu and Kashmir, Tamil Nadu, Chhattisgarh, and Andhra Pradesh between 2020 and 2024. The scheme allegedly involved securing contracts projected to yield over $2 billion in profit. The indictment also accuses the defendants of making false and misleading statements to US investors to secure funding. A parallel case has been filed by the Securities and Exchange Commission (SEC).

The charges come just months after the Adani Group rebounded from allegations of fraud leveled by short-seller Hindenburg Research. The new indictment threatens to reignite those concerns and further destabilize the conglomerate. US-based investment firm GQG Partners, a significant investor in Adani Group, stated it is monitoring the situation. GQG’s Australian-listed shares plummeted by over 19% following the news.

In India, the opposition Congress party seized on the indictment, renewing calls for a Joint Parliamentary Committee (JPC) investigation into the Adani Group’s dealings and demanding the immediate arrest of Gautam Adani. Leader of the Opposition Rahul Gandhi accused the government of protecting Adani and called for the removal of the Securities and Exchange Board of India (SEBI) chairperson. Other opposition parties, including the Shiv Sena (UBT), echoed these sentiments.

The ruling BJP countered by pointing out that many of the states implicated in the bribery scheme were governed by opposition parties at the time of the alleged offenses. The BJP also questioned the timing of the indictment, suggesting a political motive.

Adani Green Energy cancelled a planned $600 million bond offering in the wake of the charges. Shares across the Adani Group experienced significant losses, with Adani Enterprises falling as much as 23%. Moody’s Ratings agency issued a statement declaring the indictment credit negative for the Adani Group’s companies. The Adani Group has not yet issued a formal response to the allegations. The case is developing and legal proceedings are expected to unfold in the US.

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