Thu Nov 21 20:08:52 UTC 2024: ## Adani Accused of Bribery in US Case, Shares Plummet
**New York, November 21, 2024** – Gautam Adani, one of India’s wealthiest individuals, is facing criminal charges in the US for allegedly orchestrating a massive bribery scheme to secure lucrative contracts. The US Department of Justice alleges that Adani and senior executives within the Adani Group offered $25 million (approximately ₹2,100 crore) in bribes to secure contracts worth over $200 million (approximately ₹16,880 crore) over the next two decades. These contracts spanned various sectors, including ports, airports, and renewable energy.
The charges, filed in New York on Wednesday, allege that the bribes were intended to influence Indian officials. The Adani Group vehemently denied these accusations in a statement released Thursday, calling them baseless and asserting their commitment to ethical and transparent business practices. The company stated that they will address the legal matters accordingly.
The news triggered a significant downturn in the Adani Group’s stock prices on the Indian market. Adani Energy Solutions shares plummeted by 20%, while Adani Enterprises saw a 22.61% drop. Adani Green Energy and Adani Ports also experienced substantial losses. The impact on mutual fund holdings, which increased from ₹41,814 crore to ₹43,455 crore between July and October 2024, is yet to be fully assessed.
US Attorney Brian Peace stated that the alleged scheme involved securing contracts worth billions of dollars through bribery and making false statements to international investors, including those in the US. He emphasized the Department of Justice’s commitment to rooting out corruption in international markets and protecting investors.
The investigation, reportedly initiated in 2022, has faced obstacles, according to legal sources. The alleged bribery scheme involved securing approximately $300 million (approximately ₹25,000 crore) in loans and bonds from international investors.
The timing of the charges coincides with the recent US Presidential election and Donald Trump’s appointment of new US Attorneys. Adani publicly congratulated Trump on his victory and announced plans for $1 billion in US investments.
While Adani maintains his innocence and denies any wrongdoing, the accusations and subsequent market reaction cast a significant shadow over the Adani Group’s future. The full extent of the ramifications remains to be seen, particularly concerning the long-term implications for its investors and the Indian economy.
First Piper 