Sat Nov 30 22:00:00 UTC 2024: ## Adani Group Faces New Bribery Allegations, Credit Ratings Downgraded

**Mumbai, India – December 1, 2024** – The Adani Group is facing a fresh wave of challenges following a U.S. Department of Justice indictment alleging a massive bribery scheme involving Gautam Adani, chairman of the Adani Group, his associates, and officials of Adani Green Energy Ltd (AGEL). The indictment claims $265 million in bribes were paid to secure favorable power purchase agreements in several Indian states.

The allegations, which involve collusion with another U.S.-listed energy company, Azure Power Energy Ltd., have sent shockwaves through the market. Shares of Adani Group companies, although recovering somewhat after an initial drop, suffered a reported $55 billion loss in market value. This follows a $150 billion loss last year after allegations of fraud by Hindenburg Research.

The fallout has led to negative rating actions from major credit agencies Fitch, Moody’s, and S&P Global, citing governance risks and concerns about the group’s access to funding. AGEL has been forced to shelve a $600 million bond issue. Moody’s highlighted the potential for broader credit impact given Gautam Adani’s prominent role within the group.

The scandal raises serious questions about the Adani Group’s ability to secure overseas investment, potentially forcing increased reliance on domestic lenders. State Bank of India (SBI), the largest lender to the Adani Group, reportedly plans to be cautious with future disbursements, though it will continue funding projects nearing completion. SBI’s exposure to the Adani Group amounts to ₹33,800 crore, representing less than 1% of its total loan book.

The DOJ alleges that AGEL officials bribed state government officials to force power distribution companies (DISCOMs) to purchase eight gigawatts of renewable energy, even though DISCOMs were hesitant due to high prices. This casts doubt on India’s ambitious goal of reaching 500 gigawatts of renewable energy capacity by 2030, highlighting challenges in implementing renewable purchase obligations and the potential for corruption to undermine these efforts. The Adani Group denies the allegations.

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