Gautam Adani’s Empire Rocked by US Bribery Charges
Indian Billionaire Accused of Paying $250 Million in Bribes
Mumbai: Shares in Indian billionaire Gautam Adani’s conglomerate, Adani Enterprises, sank again on Friday, following a bombshell indictment in New York that accused the tycoon of paying more than $250 million in bribes to secure lucrative government contracts.
Indictment Alleges Misleading Investors
Wednesday’s indictment accused Adani and multiple subordinates of deliberately misleading international investors as part of the bribery scheme. The charges have rattled investor confidence, triggering a sell-off that has left Adani Enterprises with losses of over a quarter of its market capitalization since the indictment was released.
Adani Denies Charges, Vows to Pursue Legal Recourse
Adani Group issued a stiff denial of the charges against its directors, describing them as "baseless" and announcing it would pursue "all possible legal recourse." However, the company’s attempts to downplay the allegations have been met with skepticism by investors and critics, who have long accused Adani of improperly benefitting from his close relationship with Hindu nationalist Prime Minister Narendra Modi.
Critics Call for Adani’s Arrest
India’s opposition leader, Rahul Gandhi, called for Adani’s arrest, but said his relationship with Modi would shield him from scrutiny. "We demand that Adani be immediately arrested. But we know that won’t happen as Modi is protecting him," Gandhi told reporters in New Delhi.
Reputation Takes a Hit
The latest scandal is just the latest in a series of controversies to hit Adani’s reputation. In 2023, a report by short-seller Hindenburg Research accused the company of engaging in a "stock manipulation and accounting fraud scheme over the course of decades." The report claimed that "government leniency towards the group" had left investors, journalists, citizens, and politicians unwilling to challenge its conduct. Adani denied the allegations, calling the report a "deliberate attempt" to damage its image.
Consequences of the Scandal
The fallout from the indictment is already being felt, with Adani Enterprises’ listed subsidiaries, including its ports and power divisions, suffering significant losses. The company’s market capitalization has taken a hit, with over $150 billion wiped off its value in the past year alone.
What’s Next for Adani and Modi?
As the scandal continues to unfold, many are watching to see how Adani and Modi respond to the charges. Will Adani’s reputation be able to withstand the scrutiny, or will the scandal mark the beginning of the end for his empire? Only time will tell.
Frequently Asked Questions
Q: What are the charges against Gautam Adani?
A: Adani has been accused of paying over $250 million in bribes to secure lucrative government contracts.
Q: What is the extent of the losses suffered by Adani Enterprises?
A: The company has lost over a quarter of its market capitalization since the indictment was released.
Q: What is the relationship between Gautam Adani and Narendra Modi?
A: Adani is a close ally of Modi, who is the Prime Minister of India. Critics have long accused Adani of improperly benefitting from their relationship.