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Adani Group Denies Allegations of Bribery and Fraud Amid Stock Decline
In a significant development, Indian conglomerate Adani Group has firmly rejected claims of bribery and fraud levied against its chairman, Gautam Adani, by United States authorities. The group characterized the allegations as “baseless” following their filing in a New York federal court.
The legal issues emerged after Adani, who ranks among the world’s wealthiest individuals, was indicted alongside several co-defendants implicated in a purported scheme involving over $250 million in bribes to Indian officials. These actions were allegedly aimed at securing solar energy supply contracts that are estimated to yield more than $2 billion in profits.
As a direct consequence of the indictment, shares of Adani Green Energy, the firm central to the accusations, experienced a dramatic decline, plummeting by 17.9%. Other investors associated with the Adani Group also faced significant losses, with shares in GQG Partners dropping approximately 20% on the same day.
Beyond Gautam Adani, the indictment includes his nephew Sagar Adani and executive Vneet Jaain. They are accused of misleading investors in the U.S. and international markets regarding the company’s adherence to antibribery and anticorruption regulations while raising over $3 billion for their energy ventures.
An official spokesperson for Adani Group asserted that the organization maintains rigorous governance and transparency standards throughout its operations. In a statement sent via email, the spokesperson said, “The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organization, fully compliant with all laws.”
The spokesperson also indicated that the group would pursue “all possible legal recourse” in light of these allegations, reiterating their commitment to upholding their reputation and the integrity of the company.
As the situation develops, stakeholders and investors will be closely monitoring the implications of these allegations on the Adani Group’s operations and its broader impact on India’s energy sector.
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