The Adani Group has vehemently denied allegations levelled by US prosecutors accusing its billionaire founder Gautam Adani and his associates of orchestrating a $250 million bribery scheme to secure Indian solar energy contracts.
The group, which describes the allegations as baseless, stated it will pursue all possible legal remedies to defend itself against the charges.
This latest controversy comes as the Adani Group was beginning to recover from a tumultuous year dominated by accusations of stock manipulation and accounting fraud from US-based short-seller Hindenburg Research.
These allegations set off a series of events that have rocked the global reputation of one of India’s largest conglomerates.
Here’s a detailed timeline tracing the evolution of the Adani-Hindenburg saga and its culmination in the indictment of Gautam Adani and others in November 2024.
January 2023: Hindenburg Research drops its bombshell
At the start of 2023, Hindenburg Research released a scathing report accusing the Adani Group of “brazen” stock manipulation and accounting fraud.
The report called the conglomerate’s actions the “largest con in corporate history.”
The fallout was immediate. Adani-affiliated stocks plummeted, erasing $6 billion from Gautam Adani’s net worth overnight.
The report also intensified scrutiny of the group’s governance practices and financial disclosures.
The Adani Group responded with a 413-page rebuttal, categorically rejecting Hindenburg’s allegations and describing the report as a “malicious combination of selective misinformation.”
Despite the turbulence, Adani Enterprises launched a ₹200 billion ($2.45 billion) secondary share sale that was fully subscribed, showcasing resilience amid the storm.
March–May 2023: Supreme Court steps in
In March, India’s Supreme Court formed a six-member independent panel to investigate the allegations made by Hindenburg.
This marked a significant escalation in the saga, with regulators scrutinizing the group’s operations more closely.
By May, the panel reported it had found no evidence of fraud, offering some respite for the Adani Group.
However, public and market skepticism lingered, as critics questioned whether deeper issues remained unresolved.
December 2023–January 2024: Adani rebuilds momentum
The latter half of 2023 saw the Adani Group regain some stability. By December, Adani Enterprises’ stock value had recovered significantly, closing the year with a more moderate decline of 26%.
In January 2024, India’s Supreme Court ruled out additional investigations into the Adani Group beyond those already conducted by the market regulator.
This decision brought relief to the conglomerate, allowing it to shift focus toward rebuilding its reputation.
Gautam Adani expressed gratitude to supporters in a social media post, stating, “Truth has prevailed,” and reaffirmed the group’s commitment to India’s growth story.
His net worth surged once again, restoring his position as Asia’s richest individual.
August 2024: Hindenburg returns with new allegations
Hindenburg Research resurfaced in August 2024 with fresh accusations.
The report alleged conflicts of interest involving Madhabi Puri Buch, the chair of India’s market regulator SEBI, claiming her ties to offshore funds connected to the Adani Group prevented a deeper investigation.
Both Buch and her husband denied the allegations, labeling them baseless.
However, the new claims reignited concerns about regulatory oversight and the group’s financial practices.
November 2024: Bribery indictment stuns Adani Group
In November 2024, the Adani Group faced its most serious challenge yet.
Gautam Adani, his nephew Sagar R. Adani, and several others were indicted in New York federal court for allegedly paying $250 million in bribes to Indian government officials to secure solar energy contracts worth over $2 billion.
The indictment accused Adani and his associates of concealing the scheme while seeking funds from US investors.
Stocks of Adani-affiliated companies tumbled, with Adani Enterprises losing 23% of its value, its lowest in a year, and Adani Green Energy dropping over 19%.
In a statement, the Adani Group denied the allegations, reiterating that they were unfounded and politically motivated. The group vowed to defend itself vigorously in court.
Adani’s ties to Modi under the spotlight
The indictment also brought renewed scrutiny to Gautam Adani’s relationship with Indian Prime Minister Narendra Modi.
Both hail from Gujarat and have risen in prominence in tandem, with Adani’s business empire benefiting from policies aligned with Modi’s infrastructure and green energy priorities.
Critics, including opposition leader Rahul Gandhi, have accused Modi of favoring the Adani Group in awarding contracts domestically and internationally.
These allegations have amplified concerns about the influence of political connections on corporate success in India.
Broader implications for corporate governance
The Adani-Hindenburg saga underscores significant issues surrounding corporate governance, regulatory transparency, and political influence in India’s business environment.
The indictment has also cast a shadow on India’s push for renewable energy investments, a sector where the Adani Group is a major player.
Global investors, already wary after the Hindenburg report, may now approach Indian markets with added caution.
What’s next for the Adani Group?
As the Adani Group faces mounting legal and reputational challenges, its future hinges on its ability to navigate ongoing investigations and restore trust.
The group’s emphasis on renewable energy and infrastructure aligns with India’s development goals, but its path forward will depend on the outcomes of these legal battles.
While the group remains one of India’s most influential conglomerates, the controversies surrounding it highlight the need for stronger regulatory mechanisms and greater accountability for large corporations.
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