Mon Nov 25 22:01:50 UTC 2024: ## Adani Group Faces Global Backlash After US Bribery Indictment
**New Delhi/Paris** – The Adani Group, an Indian conglomerate, is facing a major international crisis following a US indictment accusing its chairman, Gautam Adani, and seven others of a multimillion-dollar bribery scheme. The fallout is immediate and widespread, with key international partners halting investments and projects under review.
French energy giant TotalEnergies, a significant investor in several Adani companies with an estimated exposure of $4 billion to $5 billion, announced Monday it is suspending all new financial contributions to the group. TotalEnergies, which holds a 20% stake in Adani Green Energy Ltd., cited the unclarified accusations of bribery as the reason for the pause. This follows a US indictment alleging Adani and others paid approximately $265 million in bribes to Indian government officials to secure lucrative contracts, potentially yielding $2 billion in profit over two decades. The indictment also alleges misleading public statements regarding the ongoing US investigation.
The Adani Group vehemently denies the allegations, calling them baseless and vowing legal action. However, the impact extends beyond TotalEnergies. A US development agency is reviewing its $550 million loan commitment to a Sri Lankan port project backed by Adani. Kenya canceled an airport procurement process expected to award control to the group. Bangladesh is also reviewing power generation contracts involving Adani Power, prompting calls for a thorough investigation.
The crisis has reached India’s parliament, where opposition parties disrupted proceedings, demanding a discussion on the allegations and accusing the government of protecting Adani due to alleged close ties with Prime Minister Narendra Modi. While the government has yet to officially comment on the indictment, the ruling Bharatiya Janata Party (BJP) maintains the Adani Group should defend itself, and the legal process will run its course. The Andhra Pradesh state government, where a significant portion of the alleged bribes were paid, is also investigating the matter.
The ramifications of this indictment are far-reaching, impacting Adani’s global projects and raising serious questions about transparency and corporate governance. The market reacted swiftly, with shares of Adani Green Energy falling sharply on Monday before recovering some losses. The unfolding situation promises to be a significant test of the Adani Group’s resilience and India’s commitment to accountability.
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