Stocks of Adani Group companies share fell as much as 20% to intra-day low on Thursday, November 21, on alleged charges against Gautam Adani, the chairman of India’s Adani Group, and seven others in a multibillion-dollar bribery and fraud scheme in US.
Adani Group Stock Performance
Name of StockStock Reaction Intra-day Adani Enterprises -10%Adani Ports and SEZ -10%Adani Green Energy -19%Adani Power -17.5%Adani Energy Solution -20%Adani Total Gas -18.77%Adani Wilmar -10.1%Ambuja Cement -10%Adani Group Stock Reaction Till 10 am
Adani Group Faces Serious Allegations
According to reports by news agencies including Reuters and Bloomberg, prosecutors in the United States revealed on Wednesday that the charges involve the bribing of Indian officials to secure solar energy contracts.
The charges were unveiled by US prosecutors, who accuse the Adani Group of engaging in a large-scale bribery operation. The allegations suggest that Adani and other executives paid bribes to Indian officials in exchange for favorable solar energy contracts, forming part of a broader multi-billion-dollar fraud scheme.
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Details on US indictment
Gautam Adani, the billionaire chairman of the Adani Group, has been indicted by the US Securities and Exchange Commission (SEC) on charges of defrauding American investors and allegedly bribing foreign officials.
The indictment, which includes Gautam Adani, his nephew Sagar Adani, 30, and several senior executives of Adani Green Energy, along with Cyril Cabanes, an executive at Azure Power Global Ltd, details their involvement in a large-scale conspiracy to defraud investors and global financial institutions.
The Alleged Fraudulent Scheme
According to the SEC’s case, Adani and the others are accused of conspiring to commit securities and wire fraud, as well as engaging in substantial securities fraud.
The charges stem from their roles in orchestrating a multi-billion-dollar scheme designed to secure funds from US investors and international financial institutions using false and misleading statements.
The defendants allegedly funneled money through bribes and concealed them from investors and lenders.
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