Adani Group, the billionaire group founded by Gautam Adani has denied all allegations made by US authorities accusing him and his associates to have orchestrated a $250m bribery scam in order to win Indian solar contracts.
According to the group that denies the accusations, it is going to pursue any legal recourse available in order defend themselves.
The latest controversy has come as Adani Group is beginning to recover after a turbulent year that was dominated by allegations of stock manipulation, accounting fraud and short selling from US-based Hindenburg Research.
The allegations have triggered a chain of events which has shook the reputation of India’s biggest conglomerate.
This timeline shows the development of the Adani/Hindenburg story and how it culminated in the November 2024 indictment against Gautam Adani, among others.
Hindenburg Research releases its bombshell in January 2023
Hindenburg Research published a report at the beginning of 2023 accusing Adani Group stock manipulations and accounting fraud.
According to the report, the actions of the conglomerate were the “largest fraud in corporate history.”
It was an immediate fallout. Adani-affiliated shares plummeted overnight, wiping out $6 billion of Gautam Adani’s networth.
This report intensified the scrutiny on group governance and financial disclosures.
Adani Group has responded to the allegations of Hindenburg with a 413 page rebuttal. The report was described as “a malicious mixture of selective misinformation” and categorically rejected.
Adani Enterprises, in spite of the turmoil, launched a secondary share sale for Rs200 billion (2.45 billion dollars) that was completely subscribed. This shows the company’s resilience.
Supreme Court to step in between March and May 2023
India’s Supreme Court appointed a panel of six independent members to look into the claims made by Hindenburg.
The saga reached a new level, as regulators began to scrutinize the operations of the group.
The panel found no fraud evidence by May. This was a relief for Adani Group.
But skepticism persisted in the public as well as on the market, with critics questioning whether there were still deeper problems.
Adani re-establishes its momentum between December 2023 and January 2024
Adani Group gained stability in the second half of 2023. Adani Enterprises stock had recovered by December. The year ended with a modest decline of 26 percent.
The Indian Supreme Court has ruled that no further investigations will be conducted into the Adani Group after those currently being carried out by the regulator.
The decision provided relief for the conglomerate and allowed it to focus on rebuilding its image.
Gautam Adani expressed his gratitude for supporters on social media, saying, “Truth prevailed,” reasserting the commitment of Adani Group to India’s economic growth.
He has regained his former position of Asia’s wealthiest individual.
Hindenburg Returns in August 2024 with New Allegations
Hindenburg Research reappeared in August 2024, with new accusations.
Reports alleged that Madhabi Puri Buch was a conflict of interest, as she is the head of India’s SEBI market regulator. She claimed her connections to funds offshore connected with the Adani Group prevented an investigation.
Buch as well as her husband both denied and deemed the accusations baseless.
The new allegations have re-ignited concern about the regulatory oversight of the group and its financial practices.
Adani Group stunned by bribery charges indictment for November 2024
Adani Group faces its biggest challenge to date in November 2024.
Gautam and Sagar Adani were both indicted by the New York Federal Court for paying $250,000,000 in bribes in order to obtain solar energy contracts valued at over $2 billion.
Adani, his associates and others were accused in the Indictment of hiding the Scheme while seeking funding from US Investors.
Adani Enterprises lost 23%, the lowest value in over a year. Adani Green Energy also dropped by more than 19%.
The Adani Group issued a press release in which it denied these allegations and reiterated that they are unfounded, as well as politically motivated. The Adani Group has vowed to vigorously defend themselves in court.
Adani’s connections to Modi in the spotlight
Indictment has also renewed attention to Gautam’s relationship with Indian PM Narendra Modi.
Adani and Modi are both Gujarati and their business empires have grown in parallel. Adani has benefited from Modi’s green energy and infrastructure policies.
Some critics, such as opposition leader Rahul Ghandi, accuse Modi of giving preferential treatment to the Adani Group when awarding domestic and international contracts.
The allegations raised concerns over the impact of connections with political parties on Indian corporate success.
Corporate governance: broader implications
Adani-Hindenburg highlights important issues regarding corporate governance, transparency in regulatory matters, and political influences on India’s business climate.
Adani Group, which is one of the major players in renewable energy investment in India, has been impacted by this criminal case.
Investors, who were already cautious after the Hindenburg Report, should now be even more careful when approaching Indian markets.
What is next for Adani Group?
Adani Group’s future depends on the ability of its management to restore trust and navigate investigations.
Its future depends on how these court battles turn out.
The group is still one of India’s largest conglomerates. However, recent controversies have highlighted the need for more accountability and stronger regulation for big corporations.
The timeline for Gautam vs Hindenburg – How Corporate Chaos unfolded may change as new information becomes available.
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