The sharp drop in share prices followed news of an indictment by US prosecutors, accusing Gautam Adani and other executives, including Sagar R Adani and Vneet S Jaain, of orchestrating a $250 million (around Rs 2,100 crore) bribery scheme. The charges allege that bribes were paid to secure solar energy contracts in India.
The indictment, filed in Brooklyn, New York, claims that the scheme involved making false statements to US investors and violating federal laws. It also accuses the group of obstructing justice by deleting electronic records and misleading US regulatory and law enforcement agencies, including the Department of Justice, the Securities and Exchange Commission (SEC), and the FBI.
Adding to the pressure, the SEC has filed a separate civil lawsuit against the Adani Group.
ADANI GROUP REFUTES ALLEGATIONS
“As stated by the US Department of Justice itself, “the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.” All possible legal recourse will be sought,” the Adani Group spokesperson said.
The fallout extended beyond the Indian stock market, impacting Adani Group’s international securities. Dollar bonds issued by Adani Green Energy in March 2023 plummeted by 15 cents, the steepest drop on record. Bonds from Adani Electricity Mumbai, maturing in February 2030, fell 8.6 cents on the dollar.
This marks the most significant decline in the group’s debt securities since the Hindenburg Research report earlier this year, which wiped out over Rs 12 lakh crore in the combined value of Adani Group stocks and bonds.
