Fri Nov 22 03:14:40 UTC 2024: ## Adani Group Accusations Trigger Sharp Drop in Indian Stock Market

**Mumbai, India** – The Indian stock market experienced a significant downturn on Thursday, plummeting following allegations against the Adani Group in a US federal court. While initial indications from the Gift Nifty suggested a positive opening, news of the accusations reversed the trend, leading to a day of heavy selling.

The allegations, filed in New York, accuse Gautam Adani’s company of bribery and fraud related to a solar energy contract. The complaint claims that approximately $265 million (₹2236 crore) in bribes were paid to Indian officials to secure the project for Adani Green and Azure Power Global between 2020 and 2024. The lawsuit further alleges that this bribery was concealed from Azure Power Global and that false claims were made to secure loans and bonds to profit from the contract, which was projected to generate over $2 billion in revenue over 20 years.

The Adani Group has vehemently denied these allegations, stating they are baseless and that they will vigorously defend themselves. However, the accusations triggered a massive selloff in Adani Group stocks, with many companies hitting lower circuits. Adani Enterprises shares plummeted by 22.52%, Adani Green Energy by 18.68%, and other Adani group companies also suffered substantial losses. The impact extended beyond the Adani Group, with shares of several public sector banks, who have lent to the conglomerate, also declining.

The overall market reacted sharply, with the Sensex closing down 422 points and the Nifty falling below 23,350. The total estimated loss for investors is around ₹5.35 lakh crore.

The Solar Energy Corporation of India (SECI), a government company, stated it has not received any documentation related to the allegations and sees no basis for an investigation.

This latest development represents a significant setback for the Adani Group, coming on the heels of the earlier Hindenburg Research report. The market awaits further developments in the ongoing legal proceedings.

Read More