A wave of global distrust towards Indian businessman Gautam Adani, one of the richest in the world, boss of the eponymous industrial giant. This follows serious corruption accusations brought by the US Department of Justice. Explosive file on this group close to power in India.
The Adani group is accused of violating the anti-corruption code for the United States Foreign Affairs. Concretely, Gautam Adani is accused of corruption over a gigantic call for tenders in India in which American investors were involved in 2023. He is said to have paid officials more than 250 million euros for his Adani Energy branch to supply eight gigawatts solar energy to a public company. The largest photovoltaic contract in history, with more than 5 billion euros in investments.
This is a fairly classic case of corruption, but on a gigantic scale. The problem is that this illegal arrangement was made with the money of American investors who were not familiar with it and under questionable pricing conditions… The group would have raised around 3 billion euros for this giant project. This is why the United States is leading the charge.
Reaction of global markets and partners of this giant
For two years, the American analysis firm Hindenburg has denounced opaque financial arrangements by Adani, but the group has rather fallen between the bullets. This time, the damage seems more serious. Its stock price plunged 20% last week, before rising slightly this week. The Moody’s and Fitch agencies have revised its assessment downwards.
Also readBoss of Indian giant Adani indicted in the United States, Kenya cancels contract
Beyond the markets, it is Adani’s credibility as a company that is taking a hit. Kenya canceled two contracts worth 2 billion euros with the group. Sri Lanka has launched an investigation into Adani’s infrastructure projects on its soil. The French group TotalEnergies has paused all its investments in the group. A non-exhaustive list and certainly set to grow.
India’s perception of the matter
The state of Andhra Pradesh, where part of the infrastructure should be located and where the bribes were paid, is examining the possibility of canceling the contract. This one was signed by a different local government.
For the opposition, which has just lost two very important elections, this is godsend. The Congress party in particular is campaigning on the corruption of the Adani group and its proximity to Prime Minister Narendra Modi. Its leader, Rahul Gandhi, is now calling for the arrest of Gautam Adani.
Not sure, however, that this will have political consequences. For supporters of Narendra Modi, this is a new international conspiracy to smear him. Many others are so accustomed to the widespread corruption in the country that it does not make them react.
Also readIndian giant Adani cuts energy supplies to Bangladesh over unpaid bills
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