Adani Group Faces Legal Storm

26 Nov 2024 , 01:20 PM

Following the United States’ indictment of the Adani Group’s billionaire chairman Gautam Adani for alleged bribery and fraud to get contracts for a group firm, Adani Green Energy, several countries and investors have either cancelled agreements or stopped investments in the Adani Group.

The Adani Group has called all of the charges “baseless,” yet since the indictment, the market value of its ten listed companies has dropped by almost $33 billion, with Adani Green suffering the most, losing roughly $9.7 billion.

French oil giant TotalEnergies has announced that it will no longer invest in the Adani Group, claiming that it was unaware of Gautam Adani’s alleged bribery in the United States.

According to Bernstein Research, Total’s financial exposure to Adani companies is between $4 billion and $5 billion, including a 20% investment in Adani Green Energy.

Following TotalEnergies’ announcement, Adani Green Energy’s stock fell more than 11%, while Adani Total Gas’s stock, of which Total owns 37.4%, closed 1.4% down.

The indictment against Gautam Adani is being examined by the U.S. International Development Finance Corp. in relation to the agency’s proposal to provide $550 million for a port development project in Sri Lanka that is partially controlled by the Adani Group.

The organisation announced in November of last year that it will finance the port terminal project in the important city of Colombo.

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