• Gautam Adani and Adani Group face US allegations of a $265 million bribery scheme.
• The charges have led to significant political and market fallout, including a $34 billion drop in market value.
• Adani Group denies the charges, with Gautam Adani stating that every attack makes them stronger.
• The allegations have led to international repercussions, including cancelled deals and banks reviewing their exposure to the Adani Group.

In a recent development that has sent shockwaves across India and beyond, Gautam Adani, the founder of the Adani Group, has been accused by U.S. authorities of being part of a $265 million bribery scheme. This is the second major crisis to hit Adani in just two years, and the allegations have led to significant political and market fallout.

Adani, his nephew and executive director Sagar Adani, and the managing director of Adani Green, Vneet S. Jaain, have been accused of paying bribes to secure Indian power supply contracts and misleading U.S. investors during fundraisings in the country. The charges stem from accusations of securities fraud, wire fraud, and breaches of SEC regulations. These allegations involve claims of materially false and misleading statements in AGEL's bond offering documents, particularly concerning the company's anti-bribery and anti-corruption policies.

Impact on Adani Group and Market Repercussions

The indictment has led to a review of a power deal with the group by one Indian state, a pause in investments by France's TotalEnergies, and disruptions in India's parliament due to political rows over Adani. The Union government, however, has stated that it has not received any official communication from the U.S. regarding the case.

In response to the allegations, Adani Group has denied the charges, describing them as baseless and vowing to seek all possible legal recourse. Gautam Adani broke his silence on the matter at an awards ceremony, stating, Less than two weeks back, we faced a set of allegations from the U.S. about compliance practices at Adani Green Energy. This is not the first time we have faced such challenges. He further added, What I can tell you is that every attack makes us stronger and every obstacle becomes a stepping stone for a more resilient Adani Group.

The allegations have had a significant impact on the market value of Adani Group's listed companies, with as much as $34 billion being wiped off their combined market value at one point. However, the stocks have since recovered ground as some partners and investors have rallied behind the conglomerate.

Adani's Defiance and International Repercussions

Despite the indictment, Adani remains defiant, stating, In today's world, negativity spreads faster than facts, and as we work through the legal process, I want to re-confirm our absolute commitment to world class regulatory compliance. He also emphasized that the group has faced such challenges before and that every attack only makes them stronger.

The indictment has also led to international repercussions, with Kenya cancelling two multibillion deals with Adani's companies. Furthermore, several Indian banks are reviewing their exposure to the Adani Group in the wake of the U.S. bribery allegations. However, the State Bank of India has stated that it will not stop lending to ongoing Adani projects that are nearing completion.