Adani Group stocks plunge up to 20% after Gautam Adani’s indictment in US on bribery and fraud charges
Adani Group Stocks Plunge: Following the indictment of Gautam Adani in the United States on charges of bribery and fraud, shares of Adani Group companies experienced a significant decline, with some stocks dropping by as much as 20%.
Indictment Details: The U.S. indictment accuses Adani, along with his nephew Sagar Adani and other executives, of orchestrating a scheme to pay over $265 million in bribes to Indian government officials to secure lucrative solar energy contracts. This scheme allegedly involved misleading investors about the company’s compliance with anti-corruption laws while raising billions in capital.
Impact on Investors: The charges have raised concerns among investors, leading to a sharp sell-off in the market. The Adani Group’s bonds also suffered a decline, reflecting growing apprehension regarding the company’s financial practices and governance following these serious allegations.
Legal Proceedings: The indictment has been filed in the U.S. District Court for the Eastern District of New York, where the defendants face multiple charges, including securities fraud and conspiracy to commit wire fraud. The U.S. Securities and Exchange Commission (SEC) is also pursuing civil actions against them.
Response from Adani Group: In response to the allegations, Adani Group has stated that it will vigorously defend itself against these charges, asserting that the claims are unfounded and that they have maintained a robust compliance program.
This situation marks a significant turning point for Gautam Adani and his business empire, which has faced scrutiny in recent years amid various controversies.
