Gautam Adani News / Adani gets another setback, Kenya cancels deal worth Rs 6,215 crore

Gautam Adani's troubles have increased. After a case was filed in the US court on charges of bribery, Kenya cancelled Adani Group's energy deal and airport operation deal worth Rs 6,215 crore. Adani Group has denied these allegations and said that it will pursue legal options.

Vikrant Shekhawat : Nov 22, 2024, 01:00 AM
Gautam Adani News: Indian industrialist Gautam Adani seems to be in trouble once again. After emerging from the report of US short selling firm Hindenburg Research, a new case has now been registered against him in the US. Along with this, the government of Kenya has canceled its two important deals with the Adani Group.


Setback to Adani Group in Kenya


Kenya President William Ruto took an important decision on November 21 and canceled the airport and energy sector deals with the Adani Group.


Airport operation proposal rejected


The Adani Group had made a proposal to the government to take over the operation of Kenya's main airport. But President Ruto rejected it.


Energy deal worth Rs 6,215 crore canceled


Apart from this, the deal of power transmission lines worth $ 736 million (about Rs 6,215 crore) with the Energy Ministry of Kenya has also been stopped. Adani Group signed this deal with Kenya Electrical Transmission Company in October for 30 years. However, the Kenyan court had already suspended this deal and ordered an investigation.


President Ruto said in his address, "Keeping in mind the new information and the investigation report of the allied countries, we have decided to cancel these deals."


Bribery allegations and case in America


US prosecutors have made serious allegations against Gautam Adani, his nephew Sagar Adani and other officials of the group.

What are the allegations?

It is alleged that between 2020 and 2024, Adani Group paid a bribe of $ 250 million (about Rs 2,110 crore) to Indian government officials to secure solar power contracts.

The group was expected to make a profit of more than $ 2 billion through these deals.

A case has been filed in the US court regarding this matter.

Adani Group's defense

The Adani Group has strongly denied these allegations. They have said that the investigation of the allegations is going on and these are just allegations. Adani Group should be considered innocent until proven guilty in court.

The group also said that they will pursue all legal options in this matter. An Adani Group spokesperson said in a statement, "We are cooperating with the US Department of Justice and will strongly present our side."

Way forward for Adani Group

This controversy can prove to be a big setback for the Adani Group. On the one hand, their deals are being affected at the international level, on the other hand, the confidence of domestic and foreign investors may be shaken.

The Hindenburg report and subsequent controversies have already damaged the credibility of the Adani Group. Now these new allegations and the cancellation of Kenya deals have increased the challenges for the group.

Conclusion

This is a very difficult time for Gautam Adani and his group. On one hand, they are facing increasing pressure from international courts and governments, on the other hand they will have to take tough steps to maintain their credibility. Now it remains to be seen how the Adani Group emerges from these circumstances.