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Adani Group under scrutiny: Opposition raises question over corporate transparency in India amidst the bribery charges concern

India’s parliament was adjourned on November 25 after opposition demanded a debate over allegations of bribery against the Adani group. Both houses experienced disruptions after lawmakers demanded clarification on charges levelled by the United States authorities.

The Adani group and its Chairman, Gautam Adani along with seven others were booked by US prosecutors last week. India's biggest solar power project contract — an estimated $2bn — was secured over two decades for generating 2,000MW power, for which they are charged with embezzling $265 million in bribes. It also charges misleading public statements about a US investigation launched in 2023. Accusations were declared baseless and the conglomerate promised to utilize “all possible legal recourse.”

Demands for Accountability

Congress party president Mallikarjun Kharge led opposition leaders in targeting Prime Minister Narendra Modi has demanded a parliamentary discussion. In X, Kharge posted, “As the parliament session begins, the first step the government should take is to have a detailed discussion on the Adani saga which has the potential of tarnishing India’s image on the global stage.”

Kharge pointed out that the allegations were placing the investment of millions of ‘small investors’ at risk. The country’s vice president, Jagdeep Dhankhar, who presides over the upper house, has dismissed 13 notices from lawmakers on procedural grounds. Whereas, lawmakers disrupted proceedings, leading to adjournments in both houses.

Adani Bonds and Stocks Under Pressure

Adani’s US dollar bonds fell to near one-year low as lenders and investors reviewed their risk profiles. According to sources some global banks claimed to have stopped new funds flowing to the conglomerate but existing credit facilities were not impacted. A note from Lucror Analytics said that the indictment would possibly hinder Adani’s offshore financing in the near term.

In response, the company mentioned cash reserves of $6.33 billion to pay off long-term debts for the next 28 months. Adani stocks which suffered a US$27.9bn wipeout in the prior week’s trading, showed mixed performance on November 25. Adani Energy Solutions gave back early advances while eight of ten stocks traded up.

Recurring Challenges for Adani Group

This is the second time the Adnai group has been involved in a major crisis in two years. The Germany-based group, Hindenburg Research was in the headlines in 2023 when it accused the Adani group of using offshore tax havens, while the company claims it refuted. The latest indictment has not been addressed by the government but the opposition continues to allege that PM Modi’s administration has favoured Adani.