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India's Adani Group has firmly denied allegations of bribery and fraud made by U.S. authorities against its chair, Gautam Adani, calling the claims "baseless." The charges, filed in a New York federal court, accuse Adani and others of paying over $250 million in bribes to Indian government officials to secure solar energy contracts worth more than $2 billion in profits. Shares of Adani Green Energy, central to the allegations, plunged 17.9%, while other Adani Group companies also saw sharp declines. Additionally, the company’s chair, his nephew Sagar Adani, and executive Vneet Jaain are accused of misleading international investors about the group’s compliance with anti-corruption regulations while raising $3 billion in capital.
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In response, a spokesperson for Adani Group reiterated the company's commitment to governance, transparency, and compliance across all jurisdictions. They assured stakeholders that the group remains law-abiding and plans to pursue all legal avenues to challenge the charges. Meanwhile, Citi analysts flagged investor concerns about Indian lenders' exposure to Adani Green Energy, citing borrowings of 630 billion Indian rupees and cumulative asset charges of 650 billion rupees. Following the indictment, Adani Green Energy also canceled plans to raise $600 million through dollar-denominated bonds.
Why it matters
The case has sent ripples across markets, highlighting the potential financial and reputational risks for the Adani Group and its stakeholders.