After Total Energies Halts New Investments, Fresh Trouble For Adani From Andhra
The Adani Group faces increasing scrutiny after US authorities indicted Gautam Adani and seven associates for alleged corruption involving $265 million in bribes to secure solar power contracts across Indian states. The controversy has now reached Andhra Pradesh, according to a Reuters report, where the state government is reviewing a power supply agreement connected to the conglomerate. French oil major Total Energies has also announced a halt to further investments in Adani Green Energy amidst the allegations, dealing another blow to the group’s financial and reputational standing.
US prosecutors allege that $228 million of the bribes were directed at securing Andhra Pradesh’s agreement to purchase seven gigawatts of solar power, the largest deal in India under the scheme. The Andhra Pradesh government, led by Finance Minister Payyavula Keshav, has initiated a review of internal files to examine the legitimacy of the contract signed during the previous administration. The state is exploring the feasibility of cancelling the agreement if wrongdoing is confirmed, the Reuters report said.
Read Also : Mahua Moitra Slams CBI For Being ‘Silent’ In Adani Bribery Case
The allegations have already caused significant turbulence for the Adani Group. Total Energies, which owns stakes in several Adani ventures, declared on Monday that it would cease new financial contributions until the charges and their implications are resolved. However, the French company emphasised that its partnerships with Adani were conducted transparently, with due diligence, and denied any involvement in the alleged corruption.
The fallout extends beyond Andhra Pradesh. The Adani Group’s market value dropped by $34 billion last week, with Adani Green Energy abandoning a $600 million bond offering. These developments threaten to disrupt the group’s vast operations, which encompass ports, airports, power plants, and renewable energy projects, forming a cornerstone of India’s infrastructure sector.
In response to the allegations, Adani has dismissed the charges as “baseless.” Yet, political and economic ramifications loom large. Critics argue that the close ties between Adani and Prime Minister Narendra Modi could lead to broader political fallout. Journalist Paranjoy Guha Thakurta noted, “This is significant. The relationship between Modi and Adani has always influenced India’s political economy.”
Read Also : Jairam Ramesh On The Role Of SECI In Adani Bribery Case
With its operations and reputation under intense scrutiny, the Adani Group also faces challenges on the global front. Total Energies’ pause on new investments marks a critical juncture for the conglomerate, highlighting the growing risks to its ambitions at home and abroad. The ongoing investigations could shape the future trajectory of one of India’s most influential business empires
