By: Isuru Parakrama
December 01, World (LNW): Adani Group founder Gautam Adani has publicly addressed the latest allegations from U.S. authorities, which accuse him and key members of his conglomerate of involvement in a $265 million bribery scheme.
This marks the second significant scandal to rock the Adani empire in under two years, further compounding the troubles surrounding the group, which has faced growing scrutiny over its business practices.
Speaking at an awards ceremony in Jaipur on Saturday, Adani dismissed the allegations as unfounded, asserting that his conglomerate remains dedicated to maintaining “world-class regulatory compliance.”
However, his defiant remarks come at a time when the Adani Group is grappling with both financial and reputational turmoil. The U.S. indictment accuses Gautam Adani, his nephew Sagar Adani, and Vneet S. Jaain, managing director of Adani Green Energy, of orchestrating a bribery scheme aimed at securing lucrative power contracts in India.
The charges also allege that they misled U.S. investors during fundraising efforts, further damaging the group’s credibility on the international stage.
The fresh scandal comes hot on the heels of other serious controversies that have shaken the conglomerate in recent months. Notably, one Indian state has put a key power deal with Adani on hold, while France’s TotalEnergies has paused its investments in the group, citing concerns over governance and transparency.
Additionally, the scandal has triggered political upheaval in India, with lawmakers raising uncomfortable questions in parliament about the group’s business practices and its ties to political elites.
Adani’s response, delivered in a speech that appeared to downplay the gravity of the situation, hinted at his belief that challenges and allegations only serve to strengthen the group.
“Every attack makes us stronger and every obstacle becomes a stepping stone for a more resilient Adani Group,” the business giant stressed, without directly addressing the specifics of the charges against him.
His words did little to quell the growing concerns regarding the group’s operations, both domestically and internationally. In a market already reeling from the impact of previous scandals, Adani Group’s listed companies have seen as much as $34 billion wiped off their combined market value.
Whilst the group’s stock has partially recovered, aided by support from some investors, questions remain about the long-term sustainability of the conglomerate’s growth in light of the ongoing allegations.
As the legal processes unfold, the Indian government has yet to issue any formal response to the U.S. case.
*With inputs from The Reuters
