By: Isuru Parakrama

November 25, Colombo (LNW): A U.S. government agency has announced that it is reviewing the potential consequences of recent bribery allegations against Gautam Adani, the billionaire founder of India’s Adani Group, on a previously agreed loan for a Sri Lankan port project.

The project, which is partially owned by the Adani Group, has received a financing commitment of $553 million from the U.S. International Development Finance Corporation (DFC), marking a significant investment in the port terminal in Colombo, the capital of Sri Lanka.

The review comes in the wake of federal charges filed by U.S. prosecutors in New York, which accuse Adani and seven other individuals of orchestrating a massive bribery scheme.

The charges allege that they paid approximately $265 billion in bribes to Indian government officials to secure lucrative contracts, including the development of India’s largest solar power project.

The accused parties allegedly hoped to generate profits of around $2 billion over two decades from these deals.

In response to these allegations, a spokesperson for the DFC confirmed that the agency is aware of the accusations against Adani and is carefully evaluating the potential impact on the loan agreement.

“DFC is actively reviewing the situation following the Department of Justice’s recent announcement,” the official stated. “We remain committed to upholding the highest standards of integrity and ensuring compliance in all of our projects and partnerships.“

Despite the serious nature of the allegations, the DFC clarified that no funds have been disbursed for the Sri Lankan port project as of yet, and the loan agreement remains under review.

The decision will hinge on the outcome of the agency’s assessment of the legal and ethical implications of the charges.

The Adani Group, for its part, has firmly rejected the accusations, calling the charges brought by the U.S. Department of Justice and the Securities and Exchange Commission in a parallel civil case “baseless” and has vowed to seek all available legal remedies.

The group has not issued a public comment on the situation outside of normal business hours, though it has consistently denied any wrongdoing.

This investigation could have far-reaching consequences for the future of the Adani Group’s international business dealings, particularly in Sri Lanka, where the port development project represents a key investment in the country’s infrastructure, experts in the field warn.