India’s lower house of parliament was suspended for the second day on Wednesday due to lawmakers demanding a discussion on the US indictment of billionaire Gautam Adani, while stocks of his companies regained some losses.
Last week, US authorities accused Adani, his nephew Sagar Adani, and Adani Green’s managing director Vneet S. Jaain of paying $265 million in bribes to secure Indian power contracts and misleading US investors. The Adani Group called these charges “baseless” and promised to take “all possible legal steps“.
India’s opposition, led by the Congress party, blamed Prime Minister Narendra Modi and the ruling Bharatiya Janata Party (BJP) for protecting Adani and blocking investigations. The BJP denied the accusations.
Congress leader Rahul Gandhi demanded Adani’s arrest, saying, “He has been indicted in the United States, and the government is protecting him.“
The government has not commented on the indictment. A BJP spokesperson stated, “We have no reason to defend Gautam Adani. Let the law take its course.“
Adani Green clarified that Gautam Adani faced charges for breaking US securities laws, not under the Foreign Corrupt Practices Act. The Securities and Exchange Commission (SEC) filed a complaint seeking monetary penalties but didn’t specify the amount.
- Learn about the Adani Group’s response.
- Follow the latest Congress vs. BJP debate.
- Track Adani stock performance.
Stock Recovery
Stocks of Adani Group companies bounced back on Wednesday, recovering $9 billion after losing $34 billion earlier. Adani Green, hit hardest by the accusations, rose 9% but remains $8 billion lower in value.
The charges mark the biggest challenge for Gautam Adani and his conglomerate. TotalEnergies, a French oil company with a 20% stake in Adani Green, announced it would make no further investments in the group, saying it wasn’t informed of the allegations.
In a related move, Kenya canceled a $2 billion deal that would have given Adani control of its main airport.
