US Bribery Indictment Linked to One Contract of Adani Green Energy
A US bribery indictment of Indian billionaire Gautam Adani is linked to one contract of Adani Green Energy comprising some 10 per cent of its business, and none of the conglomerate’s other companies are accused of wrongdoing, the group’s chief financial officer said on Saturday (Nov 23).
Background
On Wednesday, Gautam Adani, one of the world’s richest men, and seven others were indicted for fraud by US prosecutors over their alleged roles in a US$265 million scheme to bribe Indian officials to secure power-supply deals.
Adani Group has denied the allegations calling them “baseless”.
Defending the Allegations
Group CFO Jugeshinder Singh sought to defend the allegations on Saturday saying none of Adani’s 11 public companies “are subject to indictment” or “are accused of any wrongdoing in the said legal filing”.
The allegations in the US indictment relates to “one contract of Adani Green which is roughly 10 per cent of overall business of Adani Green”, Singh said on X.
Impact on the Business
The US indictment has already had a significant impact on the business. The group entity’s shares have plummeted, some global banks are considering temporarily halting fresh credit to Adani and Kenya has cancelled two deals with Adani worth more than US$2.5 billion.
Conclusion
The US bribery indictment of Gautam Adani and his company Adani Green Energy has significant implications for the business. The allegations are severe and could have far-reaching consequences for the company’s reputation and financial stability.
FAQs
Q: What is the nature of the allegations against Adani Group?
A: The allegations are related to a US$265 million scheme to bribe Indian officials to secure power-supply deals.
Q: Which company is accused of wrongdoing?
A: Adani Green Energy is accused of wrongdoing, specifically one contract comprising around 10% of its business.
Q: What is the impact of the indictment on Adani Group’s business?
A: The indictment has already had a significant impact on the business, with the group entity’s shares plummeting, some global banks considering temporarily halting fresh credit, and Kenya cancelling two deals worth over US$2.5 billion.
