Thu Nov 21 15:35:33 UTC 2024: ## Adani Group Allegations Trigger Sharp Market Drop in India

**Mumbai, India** – Indian stock markets experienced a significant downturn on Thursday, fueled by allegations against the Adani Group in a New York federal court. While initial indications from the GIFT Nifty suggested a positive opening, news of the lawsuit sent the market plummeting.

The accusations, filed in a US court, allege that Adani Green Energy and Azure Power Global bribed Indian officials with $265 million (approximately ₹2236 crore) between 2020 and 2024 to secure a lucrative solar energy contract. The lawsuit further claims that this bribery was concealed from Azure Power Global and that false claims were made to obtain loans and bonds to profit from the contract, which was projected to generate over $2 billion in revenue over 20 years.

The Adani Group vehemently denies these allegations, calling them baseless and stating their commitment to high standards of governance, transparency, and regulatory compliance. They affirmed their intention to utilize all legal avenues to defend themselves. The Adani Group’s response follows a similar pattern to their reaction to the Hindenburg Research report earlier this year.

The market reacted severely. The Sensex fell 422 points, while the Nifty closed at 23,350. The day’s trading resulted in an estimated ₹5.35 lakh crore loss for investors. Adani Group stocks suffered the most significant losses, with many hitting lower circuits. Adani Enterprises shares plummeted by 22.52%, while other Adani Group companies also experienced double-digit percentage drops. Shares in several state-owned banks, which have lent to the Adani Group, also declined.

The Solar Energy Corporation of India (SECI), a government company, has distanced itself from the allegations, stating it has received no documentation related to the case and sees no basis for an investigation.

This latest development marks a significant setback for the Adani Group, coming on the heels of the Hindenburg report and raising further concerns about the company’s future. The market’s response underscores the gravity of the allegations and the potential impact on investor confidence.

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