India's Adani Group in crisis

[JaDed]

Adani has 100 issues but US accusation was absolutely dull, wonder if someone like Lina Khan advised this too, probably a parting gift from Biden Entourage.
Irrespective Hindenburg who I used to respect a lot now I’m wondering if there is a massive US political clout considering they couldn’t make much against Adani.

 

[cricketjoshila]

Adani has 100 issues but US accusation was absolutely dull, wonder if someone like Lina Khan advised this too, probably a parting gift from Biden Entourage.
Irrespective Hindenburg who I used to respect a lot now I’m wondering if there is a massive US political clout considering they couldn’t make much against Adani.

Can you elaborate?

 

[Cricket Warrior]

Adani Group’s troubles keep growing as financial and legal headwinds get stronger

Adani Group is staring at trouble on several fronts as investors and partners rethink ties with the Indian conglomerate in the wake of bribery and fraud accusations by U.S. authorities.

Projects and investments tied to the Indian conglomerates’ businesses spanning across the world have come under the spotlight, following the U.S. indictment of its billionaire founder last Thursday.

“The US indictment is likely to constrain the group’s access to new financing in the near term, particularly in the offshore capital markets, Leonard Law, a senior credit analyst at Lucro Analytics told CNBC. The group has denied any wrongdoing.

The allegations are “more serious” than those from short-seller Hindenburg Research’s report in 2023, and the legal proceedings are likely to be protracted, he added.

Fitch Ratings has put several dollar bonds issued by Adani Group companies on its negative ratings watchlist, which means the bonds could potentially be downgraded.

The action reflects higher corporate governance risk and “potential contagion risk” that could affect access to funding and liquidity.

Following the bombshell indictment last week, which triggered a selloff in the group’s stocks, Kenyan president William Ruto scrapped airport and electricity deals worth about $2.5 billion with the group, Reuters reported.

In another blow to the conglomerate, French energy giant TotalEnergies, on Monday suspended new investments linked to Adani Group and claimed it was not informed of the investigation into the alleged corruption scheme.

“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the French company said.

Shares of the French oil major, which owns a 19.75% stake in Adani Green Energy and a 50% holding in joint ventures with Adani Green, fell 2.4% on Monday.

The U.S. International Development Finance Corp has also said it would review its prior agreements to lend $553 million to a Sri Lankan port development that’s backed by the Adani Group.

“DFC is aware of the recent allegations related to Adani and is actively assessing the ramifications in light of the recent DOJ announcement,” an official with the development agency said in a statement.

https://www.cnbc.com/2024/11/26/adani-groups-troubles-keep-growing-as-financial-and-legal-headwinds-get-stronger.html

 

[BouncerGuy]

India suspends parliament again in row over U.S. action on Adani

India's lower house of parliament suspended proceedings for a second day on Wednesday after disruptions by lawmakers demanding a discussion of the U.S. indictment of billionaire Gautam Adani, while stocks of his group's companies clawed back some losses.

Last week U.S. authorities accused Adani, his nephew and executive director Sagar Adani and managing director of Adani Green (ADNA.NS), opens new tab, Vneet S. Jaain, of being part of a scheme to pay bribes of $265 million to secure Indian power supply contracts and misleading U.S. investors.

The ports-to-power conglomerate denied the charges as "baseless" and vowed to seek "all possible legal recourse".

India's opposition, especially the Congress party, accuse Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) of shielding Adani and blocking investigations against him in India, accusations that have been denied.

Parliament proceedings were disrupted for the second day since the winter session began this week, with MPs shouting slogans and demanding discussion of the Adani allegations.

Congress leader Rahul Gandhi, who has been a vocal critic of Adani, said Gautam Adani should be arrested.

"The gentleman has been indicted in the United States ... and the government is protecting him," Gandhi told reporters outside parliament.

The government has made no comment on the indictment but the ruling BJP has distanced itself from the controversy.

The BJP had no reason to defend Gautam Adani, a spokesperson said, adding that the party was not against industrialists, but rather considered them partners in nation-building efforts.

"Let him defend himself," the spokesperson, Gopal Krishna Agarwal said on Tuesday, adding that the law would take its own course in case of wrong-doing.

On Wednesday, Adani Green, the company at the center of the indictment, said Gautam Adani had been charged in the United States for alleged violations of securities law and faced potential fines but had not been charged under the U.S. Foreign Corrupt Practices Act.

In a stock exchange filing, Adani Green said a complaint by U.S. regulator the Securities and Exchange Commission (SEC) sought "an order directing the defendants to pay civil monetary penalties (but) it does not quantify the amount of penalty".

The civil action launched by the SEC runs in parallel to U.S. federal prosecutors' indictment against Adani and others.

STOCK REBOUND

Shares of 10 listed Adani Group firms recovered about $9 billion in market value on Wednesday, after having shed up to $34 billion since the indictments, up to Tuesday's close.

Adani Green, the hardest hit by the accusations, jumped 9%, but is still down some $8 billion in value.

The indictments are seen as the biggest setback for Gautam Adani, 62, and his conglomerate.

French oil major TotalEnergies (TTEF.PA), opens new tab, which has a 20% stake in Adani Green, has said it will not make any more investments in the group, adding that it was not informed of the U.S. bribery allegations against Gautam Adani.

Kenya has also cancelled a procurement process of more than $2 billion that had been expected to give control of its main airport to the Adani Group.

SOURCE: https://www.reuters.com/world/india...-after-row-over-adani-allegations-2024-11-27/

 

[DeadlyVenom]

No idea about this case but through the read I learned about

US interference in Indian affairs.
Conspiracy by US government against honest Indians.
Indians hoping for Trump to come and save them.


It's like the Imran Khan thread.

 

[FearlessRoar]

Received no request from US: India on 'arrest warrant' for Gautam Adani​

The government on Friday said that it has received no request from US authorities about the arrest warrant issued against industrialist Gautam Adani over bribery charges. The remarks came amid reports of an indictment against Gautam Adani by the US Department of Justice.

The Ministry of External Affairs (MEA), in an official statement, said that the government has no role in the legal proceedings involving Adani-linked entities in the United States.

“This is a legal matter involving private firms and individuals and the US Department of Justice,” MEA spokesperson Randhir Jaiswal said during a press briefing. He added that “established procedures and legal avenues” would be followed in such cases.

For any legal action to be taken within India, including the execution of an arrest warrant, US authorities are required to notify the Ministry of Home Affairs in India. The Home Ministry can then direct relevant federal agencies to act upon the request.

The MEA spokesperson said that the government was not informed in advance about the matter and had not discussed it with their US counterparts. He said, “Any request by a foreign government for the service of a summons or arrest warrant is part of mutual legal assistance. Such requests are examined on merits. We have not received any request in this case from the US side.”

The spokesperson emphasised that the issue pertains to private entities and that the government is not legally involved in the matter at this stage.

Received no request from US: India on 'arrest warrant' for Gautam Adani

The Ministry of External Affairs (MEA), in an official statement, said that the government has no role in the legal proceedings involving Adani-linked entities in the United States.

www.indiatoday.in

 

[sweep_shot]

India suspends parliament again in row over U.S. action on Adani

India's lower house of parliament suspended proceedings for a second day on Wednesday after disruptions by lawmakers demanding a discussion of the U.S. indictment of billionaire Gautam Adani, while stocks of his group's companies clawed back some losses.

Last week U.S. authorities accused Adani, his nephew and executive director Sagar Adani and managing director of Adani Green (ADNA.NS), opens new tab, Vneet S. Jaain, of being part of a scheme to pay bribes of $265 million to secure Indian power supply contracts and misleading U.S. investors.

The ports-to-power conglomerate denied the charges as "baseless" and vowed to seek "all possible legal recourse".

India's opposition, especially the Congress party, accuse Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) of shielding Adani and blocking investigations against him in India, accusations that have been denied.

Parliament proceedings were disrupted for the second day since the winter session began this week, with MPs shouting slogans and demanding discussion of the Adani allegations.

Congress leader Rahul Gandhi, who has been a vocal critic of Adani, said Gautam Adani should be arrested.

"The gentleman has been indicted in the United States ... and the government is protecting him," Gandhi told reporters outside parliament.

The government has made no comment on the indictment but the ruling BJP has distanced itself from the controversy.

The BJP had no reason to defend Gautam Adani, a spokesperson said, adding that the party was not against industrialists, but rather considered them partners in nation-building efforts.

"Let him defend himself," the spokesperson, Gopal Krishna Agarwal said on Tuesday, adding that the law would take its own course in case of wrong-doing.

On Wednesday, Adani Green, the company at the center of the indictment, said Gautam Adani had been charged in the United States for alleged violations of securities law and faced potential fines but had not been charged under the U.S. Foreign Corrupt Practices Act.

In a stock exchange filing, Adani Green said a complaint by U.S. regulator the Securities and Exchange Commission (SEC) sought "an order directing the defendants to pay civil monetary penalties (but) it does not quantify the amount of penalty".

The civil action launched by the SEC runs in parallel to U.S. federal prosecutors' indictment against Adani and others.

STOCK REBOUND

Shares of 10 listed Adani Group firms recovered about $9 billion in market value on Wednesday, after having shed up to $34 billion since the indictments, up to Tuesday's close.

Adani Green, the hardest hit by the accusations, jumped 9%, but is still down some $8 billion in value.

The indictments are seen as the biggest setback for Gautam Adani, 62, and his conglomerate.

French oil major TotalEnergies (TTEF.PA), opens new tab, which has a 20% stake in Adani Green, has said it will not make any more investments in the group, adding that it was not informed of the U.S. bribery allegations against Gautam Adani.

Kenya has also cancelled a procurement process of more than $2 billion that had been expected to give control of its main airport to the Adani Group.

SOURCE: https://www.reuters.com/world/india...-after-row-over-adani-allegations-2024-11-27/

If bribery allegation is true, the indictment is fully justified.

 

[Varun]

Question is how did any US agency reach the conclusion that bribes were paid?

Did US conduct an investigation inside India, on Indian government officials and collected evidence?

If yes, that's a serious violation of sovereignty of India and anyone who was involved has done a criminal offence.

Secondly, DoJ isn't anything independent.

More like Bidens one last hurray before leaving the office, heard Adani cut off power in Bangladesh in some areas ? This was bit of a payback as they know the democrat stooge Yunus is also.in for hard times moving forward.

Trump most likely will remove this bogus charge against Adani when he takes full control of the office. Nothing to see or get excited about here folks, move on, Pakistanis need to spend more time thinking about their diabolical situation they are in now rather than wasting it on non matters like this.

How do you two johnnies know anything about anything in this case?

Let it play out - these guys don't even offer Rs. 2 for your feeble defence.

 

[gani999]

Adani has 100 issues but US accusation was absolutely dull, wonder if someone like Lina Khan advised this too, probably a parting gift from Biden Entourage.
Irrespective Hindenburg who I used to respect a lot now I’m wondering if there is a massive US political clout considering they couldn’t make much against Adani.

Adani allegedly bribed some politicians in India, something which every Indian businessman who ever lived has done. Adani is also listed in US stock exchanges and is raising money from American investors for his legitimate businesses, both in the US and worldwide. According to these allegations, it is this money that was raised from US investors that was used to pay the bribes. This is a violation of US law. Money raised for legitimate business purposes in the US cannot be used for illegal activities like giving out bribes. This is as far as I understand. So far so good.

The question is how the US authorities were able to trace the money. Bribes in India are always given in cash, mostly from undeclared wealth, or in the form of real estate or favors. There is usually no money trail, which is why it is so difficult to prove any bribe allegation. So it may all be just the exiting Biden administration kicking up some dust, which will eventually settle down.

 

[Technics 1210]

This is fantastic news! The demise of an Indian entrepreneur who built his company on bribes and corruption.

This is what a a real Indian CEO looks like, not a quid pro quo puppet.

 

[JaDed]

Lol the British wannabe Pakistani poster whines 24 7 on Indian stuff, it’s always good to see coz the day they pity us is when we know we are having a downfall.

 

[Romali_rotti]

How do you two johnnies know anything about anything in this case?

Let it play out - these guys don't even offer Rs. 2 for your feeble defence.

It aint about who is right or wrong, it is an opinion you dumb as** on an open forum, last I checked anyone can express it here.

 

[The Bald Eagle]

BJP accuses US State Department and 'deep state' of targeting India over Adani and Modi​

Indian Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) has accused the US State Department and "deep state" elements of attempting to destabilise India, claiming they are working alongside a group of investigative journalists and opposition leader Rahul Gandhi.

This accusation has raised eyebrows, as India and the US have built a strong relationship over the past two decades, with both countries vowing to further strengthen ties despite some ongoing differences.

The BJP's accusations come in response to the Congress party's use of reports from the Organized Crime and Corruption Reporting Project (OCCRP), which have focused on the Adani Group and its alleged ties to the Indian government.

The BJP claims that these reports are being used by Gandhi to undermine Modi. In particular, OCCRP's articles have spotlighted allegations that Adani Group chair Gautam Adani and others were involved in a $265 billion scheme to bribe Indian officials—a claim that the Adani Group has strongly denied.

The OCCRP has accused Indian state-sponsored hackers of using Israeli-made Pegasus spyware to target government critics, a charge the Indian government has also denied.

The BJP has previously accused Gandhi, the OCCRP, and 92-year-old billionaire financier George Soros of attacking Modi.

BJP accuses U.S. State Department and deep state of targeting India over Adani and Modi | The Express Tribune

BJP accuses the U.S. State Department and deep state of attempting to destabilize India over the Adani controversy and Modi's leadership.

tribune.com.pk

 

[Technics 1210]

Typical Indian CEO. Never his fault, always someone elses fault.

You're a crook Adani, just like your Saffron leader Modi.

 

[BouncerGuy]

Will bribery charges against Adani derail India's green goals?

Bribery charges by a US court against the Adani Group are unlikely to significantly upset India's clean energy goals, industry leaders have told the BBC.

Delhi has pledged to source half of its energy needs or 500 gigawatts (GW) of electricity from renewable sources by 2032, key to global efforts to combat climate change.

The Adani Group is slated to contribute to a tenth of that capacity.

The legal troubles in the US could temporarily delay the group's expansion plans but will not affect the government's overall targets, analysts say.

India has made impressive strides in building clean energy infrastructure over the last decade.

The country is growing at the "fastest rate among major economies" in adding renewables capacity, according to the International Energy Agency.

Installed clean energy capacity has grown five-fold, with some 45% of the country's power-generation capacity - of nearly 200GW - coming from non-fossil fuel sources.

Charges against the Adani Group - crucial to India's clean energy ambitions - are "like a passing dark cloud", and will not meaningfully impact this momentum, a former CEO of a rival firm said, wanting to remain anonymous.

Gautam Adani has vowed to invest $100bn (£78.3bn) in India's energy transition. Its green energy arm is the country's largest renewable energy company, producing nearly 11GW of clean energy through a diverse portfolio of wind and solar projects.

Adani has a target to scale that to 50GW BY 2030, which will make up nearly 10% of the country's own installed capacity.

Over half of that, or 30GW, will be produced at Khavda, in the western Indian state of Gujarat. It is the world's biggest clean energy plant, touted to be five times the size of Paris and the centrepiece in Adani's renewables crown.

But Khavda and Adani's other renewables facilities are now at the very centre of the charges filed by US prosecutors - they allege that the company won contracts to supply power to state distribution companies from these facilities, in exchange for bribes to Indian officials. The group has denied this.

But the fallout at the company level is already visible.

When the indictment became public, Adani Green Energy immediately cancelled a $600m bond offering in the US.

France's TotalEnergies, which owns 20% of Adani Green Energy and has a joint venture to develop several renewables projects with the conglomerate, said it will halt fresh capital infusion into the company.

Major credit ratings agencies - Moody's, Fitch and S&P - have since changed their outlook on Adani group companies, including Adani Green Energy, to negative. This will impact the company's capacity to access funds and make it more expensive to raise capital.

Analysts have also raised concerns about Adani Green Energy's ability to refinance its debt, as international lenders grow weary of adding exposure to the group.

Global lenders like Jeffries and Barclays are already said to be reviewing their ties with Adani even as the group's reliance on global banks and international and local bond issues for long-term debt has grown from barely 14% in financial year 2016 to nearly 60% as of date, according to a note from Bernstein.

Japanese brokerage Nomura says new financing might dry up in the short term but should "gradually resume in the long term". Meanwhile, Japanese banks like MUFG, SMBC, Mizuho are likely to continue their relationship with the group.

The "reputational and sentimental impact" will fade away in a few months, as Adani is building "solid, strategic assets and creating long-term value", the unnamed CEO said.

A spokesperson for the Adani Group told the BBC that it was "committed to its 2030 targets and confident of delivering 50 GW of renewable energy capacity".

Adani stocks have recovered sharply from the lows they hit post the US court indictment.

Some analysts told the BBC that a possible slowdown in funding for Adani could in fact end up benefitting its competitors.

While Adani's financial influence has allowed it to rapidly expand in the sector, its competitors such as Tata Power, Goldman Sachs-backed ReNew Power, Greenko and state-run NTPC Ltd are also significantly ramping up manufacturing and generation capacity.

"It's not that Adani is a green energy champion. It is a big player that has walked both sides of the street, being the biggest private developer of coal plants in the world," said Tim Buckley, director at Climate Energy Finance.

A large entity, "perceived to be corrupt" possibly slowing its expansion, could mean "more money will start flowing into other green energy companies", he said.

According to Vibhuti Garg, South Asia director at Institute for Energy Economics and Financial Analysis (IEEFA), market fundamentals also continue to remain strong with demand for renewable energy outpacing supply in India - which is likely to keep the appetite for big investments intact.

What could in fact slow the pace of India's clean energy ambitions is its own bureaucracy.

"Companies we track are very upbeat. Finance isn't a problem for them. If anything, it is state-level regulations that act as a kind of deterrent," says Ms Garg.

Most state-run power distribution companies continue to face financial constraints, opting for cheaper fossil fuels, while dragging their feet on signing purchase agreements.

According to Reuters, the controversial tender won by Adani was the first major contract issued by state-run Solar Energy Corp of India (SECI) without a guaranteed purchase agreement from distributors.

SECI's chairman told Reuters that there are 30GW of operational green energy projects in the market without buyers.

Experts say the 8GW solar contract at the heart of Adani's US indictment also sheds light on the messy tendering process, which required solar power generation companies to manufacture modules as well - limiting the number of bidders and leading to higher power costs.

The court indictment will certainly lead to a "tightening of bidding and tendering rules", says Ms Garg.

A cleaner tendering process that lowers risks both for developers and investors will be important going ahead, agrees Mr Buckley.

BBC

 

[Bhaijaan]

Adani is inevitable.
He reminds me of the protagonist in the movie There Will Be Blood. The man won’t stop at nothing and will probably die the richest entrepreneur to ever live leaving behind a massive empire.

 

[Bhaijaan]

Adani is inevitable

https://twitter.com/x/status/1867241634951536801