Bribery Allegations on Adani Group: $250 Million Scandal Rocks Market Confidence
Massive Stock Declines and Investor Uncertainty Amid US Prosecutors' Charges
US prosecutors have leveled serious allegations against the Adani Group led by Gautam Adani. It has been claimed that between 2020 and 2024, Indian officials were paid a bribe of $250 million (about Rs 2,000 crore) to get contracts for solar power projects. This bribe was allegedly paid to serve the group's interests and obtain favourable terms.
These allegations have dealt a big blow to the Adani Group's image. It is also alleged that information about this bribery was hidden from the American banks and investors from whom the group raised billions of dollars for these projects.
Significant fall in the stock market
Investors' confidence was shaken due to allegations of bribery. Shares of 10 listed companies of the Adani Group registered a huge decline.
- Adani Enterprises: 22.99% decline
- Adani Ports: 20% decline
- Adani Energy Solutions: 20% decline
- Adani Green Energy: 19.53% decline
- Ambuja Cements and ACC: More than 14% decline
The group's total market capitalization declined by Rs 2.45 lakh crore during morning trade. Many companies touched their lower limit (lower circuit limit).
The allegations of bribery are no less than a big shock for investors. Foreign investors, especially those connected to the US market, have become more cautious. Corruption committed abroad is also taken seriously under US law.
The possibility of legal action against the Adani Group in this case has increased, which has further increased uncertainty among investors.