Billionaire industrialist Gautam Adani’s net worth took a staggering hit, plummeting by over $12 billion on November 21, 2024, amid allegations of a $250 million bribery plot. This comes after U.S. prosecutors charged the Adani Group founder with orchestrating the scheme to secure lucrative solar energy contracts in India. The fallout has led to significant financial losses for the Adani Group’s listed companies and a sharp decline in investor confidence.
Allegations of a $250 Million Bribery Scheme
According to federal prosecutors in the United States, Gautam Adani and several associates, including his nephew Sagar Adani and board member Vineet Jain, are accused of masterminding a $250 million bribery plot. The scheme allegedly involved promising hefty payments to Indian government officials to win solar energy contracts. Prosecutors claim that the Adani Group concealed these activities while raising funds from U.S. investors, violating federal securities laws.
The U.S. Department of Justice (DOJ) has filed a criminal indictment, while the Securities and Exchange Commission (SEC) has initiated a civil complaint in the Eastern District Court of New York. These actions mark a critical escalation in the scrutiny surrounding one of India’s largest conglomerates.
Adani Group Halts Bond Offerings
In response to the allegations, Adani Green Energy announced the suspension of its proposed USD-denominated bond offerings. The company stated in a regulatory filing, “In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD-denominated bond offerings.” The move highlights the broader implications of the charges, affecting the group’s ability to raise international capital.
Adani’s Wealth Drops Dramatically
As per Forbes’ Real-Time Billionaires list, Gautam Adani’s net worth fell by 17.24% on Thursday, settling at $57.8 billion by midday. This dramatic decline pushed Adani down to 25th place among the world’s wealthiest individuals. Just a day prior, his fortune had stood at nearly $70 billion, making the $12 billion drop one of the most significant single-day losses for any billionaire this year.
Adani’s empire, which spans diverse sectors including ports, airports, power generation, and green energy, generates an annual revenue of $32 billion. However, the current allegations have put the conglomerate’s credibility and future growth prospects under intense scrutiny.
Stock Market Turmoil
The Adani Group’s stocks faced a severe sell-off during Thursday’s trading session, with the combined market valuation of its listed firms eroding by ₹2.45 lakh crore. Flagship entities such as Adani Enterprises, Adani Green Energy, and Adani Ports bore the brunt of the market rout, shedding significant value. This steep decline underscores the broader investor concerns regarding the allegations and their potential impact on the group’s operations and global reputation.
Adani Group Denies Allegations
In an official statement, the Adani Group strongly denied the allegations, calling them “baseless.” The conglomerate asserted that it is “fully compliant with all applicable laws and regulations” and pledged to explore all legal options to defend itself. The group also emphasized its commitment to transparency and ethical business practices, though the current charges have cast a shadow over its governance.
Wider Implications for the Adani Group
The charges and subsequent financial losses pose significant challenges for the Adani Group, which has been at the forefront of India’s renewable energy and infrastructure development. The suspension of the bond offerings could limit its ability to secure funding for future projects, while the erosion of market capitalization reflects growing skepticism among investors.
Moreover, the allegations come at a time when the group is seeking to expand its global footprint, particularly in renewable energy. Any damage to its reputation could hinder international partnerships and investor interest, creating further obstacles for its ambitious growth plans.
A Blow to India’s Global Business Image
The allegations against Gautam Adani and his group also have broader implications for India’s global business reputation. As one of the country’s most prominent conglomerates, the Adani Group has symbolized India’s rising economic clout on the international stage. The bribery accusations and subsequent fallout risk tarnishing that image, potentially impacting the perception of other Indian companies in global markets.