Adani Group Faces Global Setbacks Amid Fraud and Bribery Allegations Against Chairman
November 27, Colombo (LNW): The Adani Group, one of India’s largest conglomerates, is grappling with significant fallout after the U.S. indicted its chairman, Gautam Adani, on charges of bribery and fraud to secure contracts for Adani Green Energy. While the company has strongly denied the accusations, describing them as “baseless,” the impact has been severe, with the group’s 10 listed entities losing approximately $33 billion in market value. Adani Green Energy has been the hardest hit, losing $9.7 billion in value.
Here are the key developments involving the group’s stalled deals:
1. Total Energies Halts Investments
French oil giant Total Energies, a key partner in Adani Green Energy, has announced it will make no further investments in the Adani Group. The company stated it was unaware of the U.S. bribery charges against Gautam Adani. Total holds a 20% stake in Adani Green Energy and a 37.4% stake in Adani Total Gas, with an estimated financial exposure of $4 billion to $5 billion. Following this announcement, shares of Adani Green Energy fell by over 11%, and Adani Total Gas dropped by 1.4%.
2. U.S. Development Financing in Sri Lanka Under Review
The U.S. International Development Finance Corporation (DFC) is reassessing its $550 million loan for a port development project in Sri Lanka, partially owned by the Adani Group. The financing, announced last November, was intended to support the Colombo port terminal project. Sri Lankan authorities have also initiated a review of the allegations against the Adani Group and its projects in the country but have yet to make a final decision.
3. Kenya Cancels $2 Billion Airport Deal
Kenya has scrapped a $2 billion deal that would have granted the Adani Group control of Jomo Kenyatta International Airport. The agreement included constructing a second runway and upgrading the terminal in exchange for a 30-year lease.
These developments underscore the growing international scrutiny of the Adani Group, with nations and investors reassessing their engagements. As the legal battle unfolds, the conglomerate’s reputation and global partnerships remain under significant strain.
