Adani Scandal: $250 Million Bribery Charges Rock Indian Markets
Staff Editor US Bribery Charges Against Gautam Adani Shake Indian Markets
In a significant development that has sent shockwaves through India’s financial sector, billionaire Gautam Adani and seven executives of his conglomerate have been indicted on bribery charges by New York prosecutors. The allegations, which involve $250 million in bribes for solar energy contracts between 2020 and 2024, have triggered a sharp selloff in Indian markets.
The indictment, unsealed on Tuesday, accuses Adani and his associates of concealing the bribery scheme from US investors. This revelation has had an immediate and severe impact on Adani Group companies, with shares of Adani Enterprises, Adani Green Energy, and Adani Ports and Special Economic Zone Ltd. plummeting by 20% in pre-market trading.
The market reaction was swift and decisive. Adani Green Energy was forced to cancel its planned $600 million bond issuance in light of the charges. This latest setback comes just over a year after a damaging report by Hindenburg Research in January 2023, which had previously wiped $150 billion off the market value of Adani Group companies.
The case has broader implications beyond the financial markets. Gautam Adani, known for his close ties to India’s ruling Bharatiya Janata Party and Prime Minister Narendra Modi, has seen his status as one of the world’s wealthiest individuals come under scrutiny. The charges raise questions about the potential political and economic ramifications for India.
Stefanie Holtze-Jen, chief investment officer for Asia-Pacific at Deutsche Bank’s International Private Bank, commented on the market sentiment: “The Adani case is weighing on investor confidence in Indian markets. This development could have far-reaching consequences for India’s economic landscape.”
As of midday trading, India’s benchmark Sensex and Nifty 50 indices were showing significant declines. Representatives for Adani have not yet responded to media requests for comment on the charges.
The unfolding situation continues to be closely watched by investors and analysts, as it may have lasting implications for India’s financial markets and its broader economic outlook.
