Adani Group Grapples with Fraud Allegations, Market Turmoil

Adani Group is managing fallout from allegations of securities and wire fraud involving Gautam Adani and associates. Despite some executives facing charges, they have not been accused under the US Foreign Corrupt Practices Act. Legal challenges have impacted the group's market valuation and investor confidence.

In a dramatic turn for the Adani Group, billionaire Gautam Adani faces legal challenges as executives bear charges of securities fraud and wire fraud conspiracy, though notably avoiding counts under the US Foreign Corrupt Practices Act. The allegations, however, have already stirred considerable market unrest.

The charges allege $265-million in bribes were paid to Indian officials to secure solar energy contracts, projected to generate $2 billion over two decades for Adani Green Energy Ltd (AGEL). As a result, the group's valuation has plunged approximately $54 billion, triggering downgrades from international credit agencies.

The unfolding legal saga has prompted French energy giant TotalEnergies to halt new investments, while the US International Development Finance Corporation reassesses its $550-million project loan. Both moves underscore the potential ripple effects on global partnerships amid these legal proceedings.

(With inputs from agencies.)