The Adani Group, one of India’s largest business empires, is in deep trouble. The company has lost around $26 billion in market value after the US Department of Justice (DOJ) accused its founder, Gautam Adani, and key executives of bribery and fraud.
Adani Enterprises, the flagship company of the group, saw its stock price plunge by 23% in just two days of trading last week. Other companies under the Adani umbrella, such as Adani Ports and Adani Green Energy, also faced massive losses.
But why is this happening?
The Allegations at a Glance
The US indictment accuses Gautam Adani, his nephew Sagar Adani, and five other top executives of bribing Indian officials with a whopping $265 million. This alleged bribery, which took place between 2020 and 2024, was aimed at securing contracts for solar energy projects. These projects were part of Adani Green Energy, the group’s renewable energy company.
The DOJ also claims that the Adani Group misled investors by hiding ongoing FBI investigations and making false statements to Indian stock exchanges. In response, the group dismissed the allegations as “baseless” and insisted that it operates with integrity.
A History of Controversy
This isn’t the first time the Adani Group has faced accusations of misconduct. In 2023, US-based short-seller Hindenburg Research accused the company of stock manipulation and accounting fraud. That scandal wiped out a staggering $150 billion from Adani’s market value.
While the group managed to recover from the Hindenburg allegations, experts believe the current charges from the US government could have even more serious consequences.
Immediate Impact
The fallout from the latest scandal is already evident. Adani Green Energy canceled a planned $600 million bond offering, likely fearing a lack of investor confidence. Financial experts suggest that while the group doesn’t face any immediate repayment deadlines, its ability to raise funds from public markets might be severely limited until these allegations are cleared up.
Mohit Mirpuri, a fund manager in Singapore, noted that these charges bring renewed focus to the governance and regulatory risks within the Adani Group.
Political Turmoil in India
The scandal has also created political chaos back home in India. Opposition parties are demanding a thorough investigation and have called for the arrest of Gautam Adani. Rahul Gandhi, a prominent opposition leader, accused Prime Minister Narendra Modi of shielding Adani from accountability.
The ruling Bharatiya Janata Party (BJP), led by Modi, dismissed these accusations, stating that the law would take its natural course. However, the scandal has raised uncomfortable questions about the relationship between big business and politics in India.
What’s Next?
The allegations have shaken investor confidence, not just in the Adani Group but also in the broader Indian market. If the charges are proven true, the company could face severe penalties, and its access to public funding could be restricted for years.
For now, the Adani Group is fighting to maintain its reputation. But with $26 billion already wiped out, and new allegations coming to light, the road ahead looks challenging for one of India’s most powerful business empires.
This story is far from over, and the stakes couldn’t be higher—not just for Gautam Adani, but for the Indian economy as a whole.
