Indian conglomerate Adani Group has announced a loss of almost $55 billion in market value since US prosecutors unveiled charges against its top executives, including chairman Gautam Adani, one of the world’s richest people.
The indictment issued on November 20 in New York accused Gautam Adani and several top managers of group companies of intentionally misleading international investors in relation to a $265 million bribery scheme. It alleged they “devised a scheme to offer, authorize, make, and promise to make bribe payments to Indian government officials.” Adani Group has denied the allegations, calling them “baseless.”
On Wednesday, the company said the DOJ indictment does not present any direct evidence that Adani executives paid bribes to Indian government officials. It added that the claims are based on allegations of promises or discussions of bribes, with no confirmation of actual payments.
The legal wrangle and alleged inaccurate reporting dealt a financial and reputational blow to the group. International projects have been cancelled, and the conglomerate has seen a nearly $55 billion loss in market capitalisation across its 11 listed companies, the company said.
In a stock exchange filing, Adani Green Energy Ltd, which is at the center of the allegations, stated that Gautam Adani, his nephew Sagar Adani, and company’s managing director Vneet Jaain, have not been charged with any violation of the US Foreign Corrupt Practices Act (FCPA) in the counts outlined in the indictment from the US DOJ, or in the civil complaint from the US Securities and Exchange Commission. The firm stressed that the three individuals are facing charges related to alleged conspiracy to commit securities fraud, wire fraud, and securities fraud, all of which carry potential financial penalties.
Former Indian Attorney General Mukul Rohatgi, along with Rajya Sabha MP and senior advocate Mahesh Jethmalani, addressed the media on Wednesday, asserting that the allegations lack credible evidence and specificity.
“I have reviewed this indictment by the US court. My assessment is that there are five charges or counts. It’s crucial to note that counts one and five are more significant than the others, but neither Mr. Adani nor his nephew is charged in Count 1 or Count 5,” Rohatgi stated. He stressed that the charges primarily target other individuals, not Adani executives. “Such vague allegations render meaningful responses impossible,” he added.
Mahesh Jethmalani accused Indian opposition parties for politicising the issue .The allegations against the conglomerate have caused a political storm in India, with opposition leaders calling for immediate legal action against Gautam Adani, calling the indictment a serious blow to India’s credibility on the global stage.
Jethmalani also questioned the timing and intent of the DOJ’s actions, citing former US President Donald Trump’s criticism of the agency.
“The DOJ is acting with unseemly haste. The indictment appears rushed and lacks substance. This has the markings of a political hatchet job,” the senior advocate remarked. He also speculated that Gautam Adani’s public congratulations to Donald Trump on his electoral success might have drawn unwarranted scrutiny.
The US indictment also marks a significant escalation in legal challenges faced by the tycoon, who has been under scrutiny since January 2023, when US-based short seller Hindenburg Research alleged that Adani had engaged in stock market manipulation. The Adani Group has denied all the allegations and linked them to“Soros-funded interests.”