The Adani Group, which is owned by billionaire Gautam Adani, is at the center of an international controversy followed by US allegations of bribery and fraud under the Foreign Corrupt Practices Act (FCPA). 

Among the charges, Gautam Adani, his nephew Sagar Adani, and six associates were found guilty of a conspiracy to bribe $265 million to officials of the Indian government against solar energy contracts for generating some $2 billion profit over an investment cycle of 20 years. 

The US Securities and Exchange Commission (SEC) has also filed a complaint, claiming the group raised $175 million from American investors under false reports.

These allegations have created shockwaves through the Adani empire, as they have wiped $34 billion in market value across its companies. Partners, including TotalEnergies and SE, have stopped making new investments, while Adani Green Energy had to discontinue its 600 million dollar bond sale.

Adani Power has come under scanner over its 2017 power purchase agreement with Bangladesh after the country demanded either renegotiation or court-led termination of the contract, for inflated prices.

Adani Group has denied any malpractice, and any involvement in such activities emphasizing that no company within the empire is involved in the US probe. 

CFO Jugeshinder Singh reassured stakeholders about the group’s financial health, saying that the accused individuals, including Gautam Adani, will address the allegations against them directly with US authorities.

After the Hindenburg case, Adani industries are on the radar of opposition leaders in India with public backlash. The opposition parties have accused the Modi government of protecting Adani and avoiding parliamentary discussions on the scandal. 

Congress leader Jairam Ramesh criticized the government for “running away” from debates on the issue and put the proceedings on halt with protests.

CPM leaders have also joined in, for alleged conspiracy between Adani and key political figures, including Prime Minister Narendra Modi. 

They claim the “solar power scam” involves nepotism and corruption at the highest levels, demanding an independent investigation into the $2 billion scandal.

Meanwhile, Andhra Pradesh CM Chandrababu Naidu personally reviewed the situation and rethinking the 7000 MW solar project with the Adani group.

The case underlined the global implications of corporate governance and ethical accountability as the consequence continues. While the Adani Group seeks to reset the narrative, the scandal poses significant challenges to its reputation and operational stability in India and abroad.

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