Adani Group founder Gautam Adani broke his silence on Saturday regarding allegations by US authorities linking him and his conglomerate to a $265 million bribery scheme.
Addressing the claims for the first time during a live-streamed speech at an awards ceremony in Jaipur, Adani emphasized his group’s commitment to world-class regulatory compliance and resilience in the face of adversity.
“Less than two weeks back, we faced a set of allegations from the US about compliance practices at Adani Green Energy (NS:ADNA). This is not the first time we have faced such challenges,” Adani said.
He asserted that “every attack makes us stronger, and every obstacle becomes a stepping stone for a more resilient Adani Group.”
The US indictment, filed in November 2024, accuses Gautam Adani, his nephew Sagar R. Adani, and others of paying $250 million in bribes to Indian government officials to secure solar energy contracts worth over $2 billion.
The charges also allege that Adani and his associates concealed these activities while raising funds from US investors.
The allegations have caused significant turbulence in the markets, with shares of Adani Enterprises (NS:ADEL) falling by 23%, marking their lowest point in a year, and Adani Green Energy shares plummeting by over 19%.
Adani Group has firmly denied the accusations, calling them “baseless” and promising to pursue all available legal remedies.
In his speech, Gautam Adani reaffirmed the group’s commitment to compliance and transparency, stating, “Negativity spreads faster than facts, and as we work through the legal process, I want to re-confirm our absolute commitment to world-class regulatory compliance.”
Political ties under scrutiny
The indictment has reignited scrutiny over Gautam Adani’s close ties to Indian Prime Minister Narendra Modi. Both hail from Gujarat and have risen to prominence in parallel, with Adani’s business empire significantly benefiting from government policies prioritizing infrastructure development and renewable energy.
Critics, including opposition leader Rahul Gandhi, have long accused Modi of favoring the Adani Group in awarding domestic and international contracts.
These allegations have amplified concerns over the influence of political connections on corporate success in India, raising questions about transparency and fairness in the awarding of large-scale government contracts.
Financial and reputational fallout
The fallout from the indictment has dealt a heavy blow to Adani’s corporate empire. Stocks of several Adani Group companies have tumbled, reflecting investor concerns over the long-term implications of the allegations.
Adani Enterprises and Adani Green Energy, two of the group’s flagship companies, have been particularly affected, with analysts noting a potential erosion of investor confidence.
Despite these challenges, the Adani Group remains focused on weathering the storm.
The group’s finance chief recently rejected the allegations, and the Indian government has stated that it has not received any formal requests from US authorities regarding the case.
As the legal proceedings unfold, the case marks a critical moment for the Adani Group, with its reputation, market stability, and future growth hanging in the balance.