India’s Adani Group is navigating turbulent waters as allegations of a $265 million bribery scheme have sent shockwaves through markets. Billionaire Gautam Adani and key associates face accusations by U.S. authorities of orchestrating a web of fraud to secure lucrative contracts and conceal corruption from investors.
The fallout has been swift: Adani’s companies lost approximately $27 billion in market value on Thursday, and their bonds continued to slide in early Asian trading Friday. Debt linked to Adani Ports and Special Economic Zone, maturing in 2027, traded at 92 cents on the dollar, while longer-term bonds hovered around 80 cents.
The charges, filed by U.S. prosecutors, allege eight individuals conspired to pay bribes to Indian officials to secure contracts tied to solar energy projects that promised $2 billion in profits over two decades. Additionally, Adani, his nephew Sagar Adani, and former Adani Green Energy CEO Vneet Jaain are accused of raising over $3 billion through loans and bonds while concealing corrupt practices.
Adani Group has vehemently denied the allegations, branding them “baseless” and pledging to pursue all legal avenues. In a statement, the company reaffirmed its commitment to governance and compliance, describing itself as a “law-abiding organization.”
Investor confidence, however, remains shaken. Adani-linked equities and bonds are under intense scrutiny, with Indian banks reportedly having limited exposure—less than 1% of total loans, according to analysts.
Adding to the group’s woes, Kenya canceled a $2 billion procurement process on Thursday that could have granted Adani control of the country’s primary airport.
As markets brace for further reactions, the Adani Group’s reputation and financial stability face an escalating crisis.
