Adani Group in Turmoil: Allegations of Bribery and Financial Fallout

Indian conglomerate Adani Group faces significant financial and reputational challenges following a U.S. arrest warrant for founder Gautam Adani over alleged bribery. Key subsidiaries experience stock declines, while international projects face cancellation. The controversy raises concerns over future investments in India's renewable energy sector and impacts credit ratings.

The Adani Group is reeling from significant financial and reputational challenges after a U.S. warrant was issued for its founder, Gautam Adani, over a $265 million bribery allegation. Stocks of Adani Green Energy and Adani Energy saw steep declines of 8.6% and 5.6%, respectively, reflecting market jitters.

U.S. prosecutors accuse Adani and others of bribing Indian officials to secure contracts that could generate substantial profits and develop large-scale solar projects. Adani Group refutes these allegations, stating they are "baseless" and pledging to pursue legal options against what's described as "unfounded" accusations.

The fallout affects the global perception of India's renewable energy sector, potentially curbing international investment. Kenya canceled valuable agreements with Adani, amplifying concerns over transparency and due diligence, while Adani's planned U.S. bond sale was withdrawn due to the controversy.

(With inputs from agencies.)