Adani stocks are under pressure once again as the conglomerate faces fresh allegations from global institutions
Adani Stocks: Gautam Adani-led conglomerate's flagship firm, Adani Enterprises plummeted over 20 per cent during the morning trading session on Thursday after US prosecutors in New York charged the group chairman Gautam Adani and his nephew Sagar Adani, and six others with fraud. They are accused of allegedly paying Rs 2,029 crore ($265 million) in bribes to Indian government officials.
“Gautam S. Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses," stated FBI Assistant Director in Charge Dennehy.
"Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation,” the FBI official further added.
At 09:30 am, the shares of Adani Enterprises were trading at Rs 2,539.35 down by 10 per cent on the National Stock Exchange.
According to the US prosecutor's statement, the bribes were allegedly paid to Indian government officials to secure "lucrative solar energy supply contracts" with electricity distribution companies.
These contracts were expected to rake in over $2 billion in profit after tax (PAT) over 20 years. According to the official statement, Gautam Adani personally met with an Indian government official multiple times to push forward the bribery scheme.
The group also held in-person meetings to coordinate the execution process, frequently communicating "efforts in furtherance of the Bribery Scheme, including through an electronic messaging application."
These allegations come at a time when the conglomerate is aggressively investing in renewable energy initiatives. Plus, just a few months back the US-based short-seller Hindenburg Research had made fresh accusations against the conglomerate. And, even though the Adani group hardly felt an major impact, there is a chance that this indictment might not be a good sign for the billionaire.
The shares of the conglomerate's green arm witnessed a sharp fall on Thursday. At 10:16 am, the Adani Green Energy shares were trading at Rs 1,141.70, down by nearly 20 per cent on the NSE.