New Delhi: Adani Group has reported a loss of nearly US$55 billion in market capitalisation following a fraud indictment against its founder, Gautam Adani, and several executives. The indictment, issued on November 20 in New York, alleges that they misled international investors as part of a bribery scheme involving payments to Indian government officials.
The firm, which denies all charges, stated that the legal actions have led to significant repercussions, including project cancellations and financial market impacts. Stocks of Adani Enterprises rose by 1.8% recently, but the group's key firm has seen over a 20% decline in market capitalisation since the indictment.
Adani, once the world's second-richest man, faces accusations of participating in a US$250 million bribery scheme. The group has characterized the allegations as baseless, asserting that neither Gautam Adani nor his nephew, Sagar Adani, have been charged with bribery or corruption.
Internationally, the fallout has been swift. In Kenya, President William Ruto announced that the Adani Group would withdraw from plans to expand the country's electricity network and its main airport. The group was set to invest US$1.85 billion in Jomo Kenyatta Airport and US$736 million in utility Ketraco.
Sri Lanka has also initiated an investigation into Adani's local investments, including a US$442 million wind power project and a deep-sea port terminal in Colombo, projected to cost over US$700 million.
Adani Group, which operates in sectors such as coal, airports, cement, and media, has previously faced corporate fraud allegations, experiencing a significant stock decline in 2023 after a report by Hindenburg Research accused it of extensive fraud.