Adani Group has once again entered into a yet another fresh controversy after the US prosecutors indicted him, his nephew Sagar Adani and six others for allegedly offering Rs 2,029 crore ($265 million) in bribes to Indian government officials for securing “lucrative solar energy supply contracts” with state electricity distribution companies. Gautam Adani and his conglomerate has been under the scanner since the US short selling company Hindenburg Research released a scathing report in January, 2023.
Almost a month after the Hindenburg report lopped off over $135 billion in market value from Gautam Adani’s empire, the billionaire had hired top-shelf US crisis communication and legal teams, scrapped a $850 million coal plant purchase, reined in expenses, repaid some debt and promises to repay more. Later in December, the conglomerate raised over USD 5 billion (Rs 41,500 crore) in equity and a double of that in debt as the apples-to-airport group made a comeback after being hit by the bombshell short seller report.
While the company saw signs of improvement with Adani Enterprises posting Q2FY25 net profit skyrocketing nearly eightfold on-year to Rs 1,742 crore and revenue rising 16 per cent to Rs 22,608 crore, Gautam Adani was caught in another pickle with today’s indictment by the US Securities and Exchange Commission (SEC).
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Following today’s indictment, stocks of Adani Group companies fell as much as 20 per cent to intra-day low on Thursday, November 21. Reacting to this, GQG Partners, a prominent investment firm, confirmed it is monitoring the situation. GQG noted it is closely reviewing the latest developments and is evaluating whether any action is necessary in relation to its portfolio holdings. “Our team is reviewing the emerging details and determining what, if any, actions for our portfolios are appropriate,” GQG stated.
Here is a list of controversies clouding the Adani Group since 2023…
November 2024: US charges Gautam Adani, 7 others in $265 million bribery case
US prosecutors in New York indicted Adani Group Chairman Gautam S Adani, his nephew Sagar Adani and six others on Wednesday for allegedly offering Rs 2,029 crore ($265 million) in bribes to Indian government officials for securing “lucrative solar energy supply contracts” with state electricity distribution companies.
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