The setback for Adani Group Chairman, Gautam Adani, comes following his indictment by US prosecutors this week on on charges he duped investors in a massive solar energy project in India by concealing that it was facilitated by an alleged bribery scheme.
In another major setback for Gautam Adani following his indictment in a multi-billion dollar bribery case in the United States, Kenya has cancelled a proposed airport expansion as well as an power transmission deal with the Adani Group. Kenyan President William Ruto, in a state of the nation address, on Thursday, announced that he has cancelled the multimillion-dollar airport expansion and energy deals with Gautam Adani after US bribery and fraud indictments against the Indian business tycoon.
Ruto said the decision was taken on the basis of new information provided by Kenyan investigative agencies and partner nations, adding that he has also cancelled the $736 million deal which Kenya’s energy ministry and Adani Energy Solutions had signed in October to construct power transmission lines in the country.
“I have directed agencies within the ministry of transport and within the ministry of energy and petroleum to immediately cancel the ongoing procurement,” the Kenyan President said.
Adani Energy Solutions, a subsidiary of the Adani Group, had signed a 30-year, $736 million public-private partnership deal with the Kenya Electrical Transmission Company (KETRACO), in October this year. However, days later, the Kenyan high court suspended the deal after it was challenged by the Law Society of Kenya.
On Thursday, Kenya’s Energy Minister Opiyo Wandayi told a parliamentary committee there had been no bribery or corruption involved on Kenya’s part in signing that deal.
US indicts Gautam Adani
The setback for Gautam Adani comes following his indictment by US prosecutors this week on on charges he duped investors in a massive solar energy project in India by concealing that it was facilitated by an alleged bribery scheme. The Adani Group Chairman was charged with securities fraud and conspiracy to commit securities and wire fraud.
According to the indictment, Gautam Adani, along with seven other defendants agreed to pay about $265 million in bribes to Indian government officials to secure solar energy contracts, related to a renewable energy project in India.
Gautam Adani and his nephew, Sagar Adani, are accused of orchestrating the fraudulent scheme to ensure a solar energy project and misleading investors during a $750 million bond offering, which raised about $175 million from US investors.
“Gautam and Sagar Adani were engaged in the bribery scheme during a September 2021 offering by Adani Green that raised $750 million, including approximately $175 million from US investors. The Adani Green offering materials included statements about its anti-corruption and anti-bribery efforts that were materially false or misleading,” said the US Securities and Exchange Commission.
Adani Group refutes charges
Federal prosecutors in New York unsealed the indictment against Gautam Adani, charging the 62-year-old billionaire with securities fraud, conspiracy to commit securities fraud, and wire fraud. Adani Group has refuted the allegations against its Chairman, stating that the conglomerate would seek “all possible legal recourse” to fight the charges.
“The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied. The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations. We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws,” the group said in a statement.
Gautam Adani’s net worth tanks
Meanwhile, following the US indictment, Gautam Adani’s net worth tanked by a whopping $12.1 billion, as stock prices of several Adani Group companies fell sharply on Thursday, including those of Adani Enterprises, the group’s flagship company.
As per Forbes Real-Time Billionaire List, Gautam Adani has a net worth of $57.7 billion, making him the second richest man in India, behind Reliance Industries Chairman, Mukesh Ambani, who boasts a net worth of $96.5 billion, as of November 21, 2024.
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