Staff Reporter :
India’s parliament faced suspension on Monday following heated disruptions by lawmakers demanding a discussion on bribery allegations against the Adani Group.
The controversy comes after US authorities charged the conglomerate’s billionaire chairman, Gautam Adani, and seven others with allegedly paying $265 million in bribes to Indian government officials.
The fallout has been significant. French energy major TotalEnergies (TTEF.PA), a key partner of the Adani Group, has paused investments into the ports-to-power conglomerate. Additionally, the Kenyan government has cancelled deals worth over $2.5 billion with the company.
In Bangladesh, where Adani supplies electricity from a coal-based power plant with a capacity of 1,600 MW, the allegations have added strain to an already tenuous relationship.
The long-term electricity purchase agreement, signed under the previous Awami League government, has faced growing scrutiny since the administration was ousted on August 5 following mass protests.
Adani Group has reportedly warned of cutting electricity supplies if outstanding bills are not settled. In light of the fraud charges, calls are mounting to re-evaluate this deal.
The US allegations accuse the Adani Group of securing contracts yielding $2 billion in profits over 20 years through illicit payments.
These include projects like India’s largest solar power initiative. Outside India’s parliament, members of the Congress youth wing staged protests demanding Gautam Adani’s arrest, with some attempting to breach police barricades.
This marks the second major crisis for the Adani Group in two years. Last year, short-seller Hindenburg Research accused the conglomerate of misusing offshore tax havens, claims the company denied.
The recent charges have rattled investors, leading to a significant drop in Adani Group’s dollar bond prices. Some global banks are reportedly reconsidering fresh credit lines while maintaining existing loans.
In Asian trading on Monday, liquid debts issued by Adani Ports and Special Economic Zone (APSE.NS) fell between 1 and 2 cents. Similar declines were observed in Adani Transmission debt.
Over the past two sessions, the group’s listed stocks, led by Adani Enterprises (ADEL.NS), have shed approximately $28 billion in market value. By 0932 GMT on Monday, five of its ten stocks, including Adani Green (ADNA.NS), Adani Energy (ADAI.NS), and Adani Power (ADAN.NS), were trading down between 3.5% and 9%.
Banks, regulators, and investors worldwide are closely monitoring the fallout from these allegations, as the Adani Group grapples with one of the most challenging periods in its history.
