Stock exchanges have sought explanations from Adani Group entities over alleged violations of disclosure norms concerning a US bribery case and Kenya’s subsequent cancellation of major deals. The bourses are awaiting the conglomerate’s response regarding the developments, which have drawn global attention.
In its response on Thursday, Adani Group stated that “there are no allegations made against the company” in the US bribery case. The group has also denied accusations of paying bribes to secure favourable terms for solar power contracts, labeling the claims by US prosecutors as baseless. Adani Group asserted compliance with all laws and said it would pursue all possible legal remedies.
While Adani Group addressed the US case, it has not yet responded to stock exchanges regarding Kenya’s decision to cancel an airport expansion project and energy deals linked to the alleged bribery case. This silence has raised further questions about the group’s handling of the crisis.
Though officials from the Securities and Exchange Board of India (SEBI) have not commented on the matter, experts believe the regulator will likely investigate any potential violations of disclosure norms. If breaches are found, SEBI is expected to take necessary action.
Gautam Adani, his nephew Sagar Adani, and others have been accused by US prosecutors of orchestrating a $265 million (Rs 2,200 crore) bribery scheme to secure favourable terms for solar power contracts in India. The charges, brought by the US Department of Justice (DoJ) and the Securities and Exchange Commission (SEC), include a criminal indictment and a civil complaint filed in the US District Court for the Eastern District of New York.
The prosecutors allege that Adani Group paid bribes to officials in Andhra Pradesh and Odisha to push for expensive solar power projects, potentially yielding over $2 billion in profits over two decades. The investigation reportedly began in 2022, uncovering false and misleading statements used to raise $2 billion in loans and bonds, including from US-based firms.
The allegations could have far-reaching consequences for Adani Group, including reputational damage, restricted access to US financial markets, and potential limitations on Gautam Adani’s international travel. Politically, the case is expected to provide ammunition for the opposition to target the government ahead of the winter session of Parliament starting Monday.