Adani tried to mislead U.S. investors to pump their money into the company.
Digital Desk: Currently, the head of Adani Enterprises is the biggest conglomerate in India, ranking as the 18th wealthiest person on Bloomberg’s Billionaire list, together with six others have been charged with bribery and fraud in connection with the contracts for solar energy production. As claimed, for $265 million (around ₹2,250 crores), Adani tried to mislead U.S. investors to pump their money into the company.
The US Securities Exchange Commission has declared an arrest warrant against Gautam Adani & Sagar Adani the Executive Director of Adani Green Energy. As widely covered in the media the allegations concern Adani bribing Indian government officials for supply of green energy contracts amounting to ₹2,250 crores. All these allegations have been made by a U.S. whistleblower.
In response, Adani Green said it had opted not to proceed with a proposed issue of
dollar bonds partly due to the criminal charges filed by the U.S. Department of Justice. Adani Green Energy declared this while filing its report with the stock exchange and said that it is proceeding to rectify the misleading claims made against Gautam Adani and Sagar Adani.
The consequences have been felt heavily by Adani Group firms with shares traded on the stock exchange. Adani Green Energy’s share price plummeted to 18%, and the Adani Enterprises by 21%, Adani Ports by 20%, and Adani Energy Solutions by 20% of investors’ money; with up to 20% wipeout across 10 Adani Group enterprises.
Several voices were raised over the Indian government’s inaction that Congress MP and Opposition leader Rahul Gandhi referred to Adani. About the allegations of the US, Gandhi said, It is funny that the US agencies have caught him red handed, but no action has been taken against him in India. Why is Adani not in
jail?" Prime Minister Modi is accused of sharing an undisclosed relationship with Gautam Adani as Gandhi called for a JPC probe into the alleged scandal.
Gandhi went further to request the ouster of Madhavi Buch whom she accused of protecting Adani, adding that until the Modi-Adani connection is dismantled, more may never be accounted for.
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