Thu Nov 21 21:50:53 UTC 2024: ## Adani Accused of $250 Million US Bribery Scheme, Shares Plummet

**NEW YORK/MUMBAI** – Indian billionaire Gautam Adani and seven others, including his nephew, have been indicted in the US on charges of orchestrating a $250 million bribery scheme to secure lucrative Indian government contracts. The indictment, filed in New York, alleges the scheme involved payments to Indian officials to win contracts for Adani’s renewable energy company, projected to yield over $2 billion in profits.

The Adani Group, a sprawling conglomerate with interests in ports, airports, and renewable energy, vehemently denies the allegations, calling them “baseless” and vowing to pursue all legal avenues. However, the charges sent shockwaves through the markets. Shares of Adani Enterprises, the group’s flagship firm, plummeted 22% on Thursday, and other group companies also suffered significant losses. Adani Green Energy, the firm at the center of the allegations, suspended a planned $600 million bond offering.

The indictment alleges that Adani and his associates misled US and international investors about the bribery scheme while raising approximately $3 billion in loans and bonds. Prosecutors stated the investigation began in 2022 and encountered obstruction. US Attorney Breon Peace described the alleged scheme as “elaborate,” emphasizing the Justice Department’s commitment to combating international corruption and protecting investors.

This latest development comes amid ongoing scrutiny of the Adani Group. In 2023, US short-seller Hindenburg Research accused the group of stock manipulation and accounting fraud, triggering a market sell-off and investigations in India. While the Adani Group denied those allegations, the US indictment presents a significant new challenge.

The timing of the indictment, shortly after Donald Trump’s re-election and Adani’s pledge of a $10 billion US investment, is raising eyebrows. While the Adani Group has attempted to rehabilitate its image following the Hindenburg report, this new legal battle could prove significantly more damaging. Major investors like GQG Partners LLC, which holds a nearly $10 billion stake in the Adani Group, are closely monitoring the situation. Credit rating agency Moody’s has deemed the indictment credit-negative for the group’s firms.

The issue has ignited a political firestorm in India, where Adani is seen as a close ally of Prime Minister Narendra Modi. Opposition parties are demanding an investigation and have accused Modi of protecting Adani, allegations the ruling party denies. The winter session of the Indian parliament is expected to see heated debates on this matter.

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