India’s lower house of parliament suspended proceedings Wednesday for a second consecutive day amid opposition demands to discuss U.S. allegations against billionaire Gautam Adani, even as his conglomerate’s stocks rebounded from recent losses.
U.S. authorities last week accused Adani, his nephew Sagar Adani, and Adani Green managing director Vneet S. Jaain of orchestrating $265 million in bribes to secure Indian power supply contracts and misleading American investors. The ports-to-power conglomerate has denied these charges as “baseless” and promised legal action.
Opposition leader Rahul Gandhi of the Congress party called for Adani’s arrest, telling reporters outside parliament, “The gentleman has been indicted in the United States … and the government is protecting him.” The opposition accuses Prime Minister Narendra Modi’s Bharatiya Janata Party (BJP) of shielding Adani and blocking Indian investigations, claims the government denies.
BJP spokesperson Gopal Krishna Agarwal maintained Tuesday the party had no reason to defend Adani, saying, “Let him defend himself,” while adding that the law would take its course if wrongdoing occurred.
Adani Green clarified Wednesday that while Gautam Adani faces potential fines for alleged securities law violations, he has not been charged under the U.S. Foreign Corrupt Practices Act. The company’s stock exchange filing noted the Securities and Exchange Commission seeks civil monetary penalties but hasn’t specified amounts.
The conglomerate’s listed companies recovered approximately $9 billion in market value Wednesday, after losing up to $34 billion following the indictments. Adani Green, which suffered the heaviest losses, jumped 9% but remains down about $8 billion in value.
The controversy has prompted French oil major TotalEnergies, which holds a 20% stake in Adani Green, to halt further investments in the group. Kenya has also cancelled a $2 billion procurement process that would have given the Adani Group control of its main airport.
REUTERS
