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New Trouble for Adani Group: US Court Alleges Bribery in Solar Energy Deals

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The Adani Group, already battling allegations by U.S.-based short-seller Hindenburg Research as it transitioned out of allegations, faces the latest layer of accusations. This time, the challenge comes from a court in the U.S., which has alleged that Adani Green Energy bribed Indian government officials using the funds fetched from U.S. investors. It further claims that the bribes were in the tune of $250 million that were paid to get attractive contracts for providing solar energy to the government of India. It also charges Gautam Adani, founder of the Adani Group, personally with meeting with these officials to discuss the arrangements. Gautam Adani, his nephew Sagar Adani, and six executives tied to the Canadian pension fund CDPQ and its investee firm Azure Power, have been charged by the U.S. Department of Justice for their role in bribing Indian officials for favorable agreements about green energy projects.


Impact on Stocks of Adani Group

The most recent allegations have caused a huge impact on the stock market. Shares in Adani Green Energy Ltd, which was trading at ₹1,493 on November 18, tumbled as much as 30%, having closed at ₹1,051 on November 22. The spurt of negative sentiment has had the same effect on the rest of the group. Shares of Adani Enterprises, Adani Power, Adani Ports, and Adani Total Gas have declined by around 20% in the past week.The allegations did tend to have a ripple effect that led to a full-scale slump in the Indian stock market. 

Political and Public Flak 

These allegations have therefore reopened criticism of the Adani Group within India. The opposition parties, for one, have not been silent. Congress leader Rahul Gandhi has called for the immediate arrest of Gautam Adani, accusing the government of providing him with protection. Others, however, claim that these reports are part of a deliberate move by the United States against the Adani Group's prestige. There has been a lot of speculating such claims in light of recent CCI judgment asking Meta to pay ₹213 crores to a fine made against it on account of its WhatsApp privacy policy.

What Lies Ahead? 

Regardless of the truth of these allegations, one thing is clear: the issues plaguing the Adani Group are far from being over. Having endured the Hindenburg Report earlier this year, the group has to face scrutiny from a federal court in the United States. Whether the allegations are true or just another chapter in the long saga of controversies surrounding the Adani Group, only time will tell it. Meanwhile, the situation remains charged with great political and market implications for one of India's largest business houses.

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Location: New Delhi, Delhi, India

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