India Suspends Parliament Over U.S. Indictment of Adani
India’s lower house of parliament was suspended for the second consecutive day on Wednesday due to disruptions by lawmakers demanding a discussion on the U.S. indictment of billionaire Gautam Adani. The political uproar follows allegations of bribery and securities fraud, which have shaken India’s political and business landscape. Adani’s conglomerate, which spans multiple industries including ports and power, has denied the accusations, but the controversy continues to unfold as stocks of his companies attempt to recover some losses.
Disruptions in Parliament Over U.S. Indictment of Adani
The suspension of parliament came after lawmakers, particularly from the opposition Congress party, raised slogans and demanded a discussion about the allegations against Adani. The U.S. authorities have accused Adani, along with his nephew Sagar Adani and executive Vneet S. Jaain, of being involved in a scheme to pay bribes amounting to $265 million to secure power supply contracts in India. The charges also include misleading U.S. investors. However, Adani has called the allegations “baseless” and promised to explore all legal options to challenge them.
The Congress party, led by Rahul Gandhi, has been vocal in accusing Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP) of protecting Adani from scrutiny. Rahul Gandhi has repeatedly called for Adani’s arrest, stating that the billionaire’s indictment in the United States should not be ignored. “The gentleman has been indicted in the United States, and the government is protecting him,” Gandhi said in a statement to reporters outside parliament.
Government’s Response to the Adani Allegations
The Indian government has yet to comment directly on the U.S. indictment. However, the ruling BJP has distanced itself from the controversy, stating that it has no obligation to defend Adani. Gopal Krishna Agarwal, a BJP spokesperson, emphasized that the party did not consider itself responsible for defending industrialists like Adani but instead viewed them as key partners in the country’s development. Agarwal suggested that Adani should handle the matter personally, and if any wrongdoing is discovered, the law would take its course.
Despite the government’s lack of response, the scandal has sparked intense debate, with opposition parties demanding a thorough investigation into Adani’s activities. Critics argue that the BJP’s failure to act raises questions about its relationship with the Adani Group.
Adani Group’s Official Statement on U.S. Indictment
In response to the U.S. indictment, Adani Green, one of the companies at the heart of the charges, issued a statement on Wednesday. The company confirmed that Gautam Adani was facing accusations related to violations of securities laws in the U.S. but clarified that he had not been charged under the U.S. Foreign Corrupt Practices Act. According to Adani Green, the complaint filed by the U.S. Securities and Exchange Commission (SEC) sought civil penalties, but no specific amount had been mentioned.
The SEC’s civil action is running alongside the criminal case launched by U.S. federal prosecutors. While the legal battle intensifies, the Adani Group continues to assert that it has not committed any wrongdoing and remains committed to clearing its name.
Impact on Adani Group’s Stocks Amid Controversy
While the political turmoil continues, the financial impact on the Adani Group has been significant. The group’s market value plunged by $34 billion following the indictment, but stocks have shown signs of recovery in recent days. On Wednesday, Adani Green saw its shares rise by 9%, though it remains down by approximately $8 billion in value compared to pre-indictment levels.
The recovery in stock prices comes despite the fact that the Adani Group is facing mounting pressure from both the Indian and international communities. French oil giant TotalEnergies, which holds a 20% stake in Adani Green, announced that it would halt further investments in the group, citing a lack of information about the bribery allegations. This decision signals growing unease among international investors.
Global Consequences for Adani’s Business Ventures
The ripple effect of the U.S. indictment extends beyond India. In Kenya, a procurement process valued at over $2 billion, which was expected to grant control of the country’s main airport to the Adani Group, has been cancelled. This marks another setback for the conglomerate, which has faced increasing scrutiny on the global stage.
With the legal battles continuing and the political controversy escalating, the future of Gautam Adani’s empire remains uncertain. The charges against him and his associates could have lasting consequences on his business ventures, both in India and abroad.
