What is the allegation against Adani, why is there a ruckus, understand everything

Gautam Adani News: After Hindenburg Research accused Gautam Adani and his companies, there was a stir in the Indian stock market, and now Adani has been accused by the US in a new investigation. This time the allegations are of giving bribes, which is related to an amount of more than Rs 2100 crore. Since then, Adani Group's shares have seen a huge decline and the group's market cap has lost about Rs 2.50 lakh crore. So, what is this whole matter?

What allegations have been leveled against Gautam Adani?

In the US, Gautam Adani and his company Adani Green Energy have been accused of giving bribes of more than Rs 2100 crore to government officials in India to get solar energy projects and contracts. Apart from this, it is also alleged that Adani hid about this bribe while raising funds from American banks and investors. US prosecutors claim that Adani Green Energy officials had made a secret plan to bribe Indian officials.

From when to when was the bribe given?

US prosecutors say that this round of bribery lasted from 2020 to 2024. During this time, money was wrongly given to Indian officials to acquire Adani Green and Azure Power Global Solar projects. This solar project was expected to generate a profit of more than Rs 16,000 crore in the next 20 years. False claims were made to obtain this amount and money was deposited through loans and bonds. US Attorney Brian Peace says that a plan was made to bribe Indian officials to win this game and everyone was kept in the dark.

Who all are under investigation?

The US Securities and Exchange Commission (SEC) has investigated 7 people including Gautam Adani, his nephew Sagar Adani, American investor Vineet Jain, Azure Power CEO Ranjit Gupta and company advisor Rupesh Aggarwal in this case. The US court is hearing the case and after this warrants have also been issued against Gautam Adani and his nephew.

Which project was the money given to acquire?

Adani Green Energy recently secured a contract to provide 12 gigawatts of solar energy from the Solar Energy Corporation of India. However, buyers who bought solar energy were not being found in India for this deal, due to which Adani and Azure Power planned to bribe government officials. According to media reports, a case of bribing Andhra Pradesh officials has come to light. Allegedly confidential codes and encrypted messaging were also used in this entire matter, so that the role of Adani and his company could be hidden.

Adani Group shares fall

Adani Group shares saw a massive drop after US prosecutors accused it of paying bribes. Adani Enterprises shares fell 20 per cent, Adani Energy Solutions 20 per cent, Adani Green Energy 19.17 per cent, Adani Total Gas 18.14 per cent and Adani Power 17.79 per cent. Apart from this, shares of other Adani Group companies like Ambuja Cements, ACC, NDTV and Adani Wilmar also fell by 10 to 15 per cent.

Conclusion

A new series of allegations against Gautam Adani and his group has affected not only his business but also the Indian stock market. The investigation into the matter is still on, and it will be interesting to see what the outcome of this case is in the US court. Adani Group will have to face the challenge of winning back the trust of its investors and partners to overcome these allegations.