The Adani Group faced a sharp downturn in the stock market on Thursday, erasing ₹2.45 lakh crore in market value after US prosecutors accused Gautam Adani and other senior executives of paying $250 million in bribes to Indian officials to secure favorable solar power contracts.
The allegations have sent shockwaves through the group’s listed companies, with several hitting their lowest trading limits on the Bombay Stock Exchange (BSE).
Steep Declines Across Adani Companies
The group’s flagship firm, Adani Enterprises, experienced a 22.99% drop, while Adani Ports and Special Economic Zone and Adani Energy Solutions both fell by 20%. Other major losses included:
- Adani Green Energy: Down 19.53%
- Adani Total Gas: Lost 18.14%
- Adani Power: Declined 17.79%
- Ambuja Cements: Fell 17.59%
- ACC: Dropped 14.54%
- NDTV: Down 14.37%
- Adani Wilmar: Slid 10%
The broader equity market was also impacted. The BSE Sensex dropped by 536.89 points to close at 77,041.49, and the NSE Nifty declined by 186.75 points to 23,331.75.
Allegations of Corruption
The allegations by US prosecutors claim that between 2020 and 2024, Gautam Adani, his nephew Sagar Adani, and other executives funneled over $250 million in bribes to Indian government officials to secure lucrative solar energy contracts. The contracts, hidden from US banks and investors, were allegedly expected to generate over $2 billion in profits for the Adani Group.
US Attorney Breon Peace, representing the Eastern District of New York, described the scheme as an “elaborate plan to bribe Indian government officials for lucrative contracts.” The charges include securities fraud, conspiracy, and wire fraud.
Legal and Regulatory Fallout
Gautam Adani, chairman of the Adani Group, along with Sagar Adani, executive director at Adani Green Energy, and former CEO Vneet Jaain, now face both criminal charges and a civil case filed by the US Securities and Exchange Commission (SEC).
Under US law, foreign corruption cases can be pursued if they involve American investors or markets, adding a global dimension to the case.
Adani Group’s Response
The Adani Group has not yet issued an official statement on the allegations. The accusations and subsequent market reaction come at a time when the conglomerate has been under heightened scrutiny following previous controversies surrounding its business practices.
Market Repercussions
The dramatic fall in Adani Group shares underscores the market’s sensitivity to allegations of corporate misconduct. Investors are likely to remain cautious as the legal proceedings unfold, with the group’s future performance heavily dependent on its ability to address and resolve the charges.
The situation highlights the importance of corporate governance and transparency in maintaining investor confidence, particularly for companies with significant international exposure.
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