India’s parliament was suspended on Monday after disruption by lawmakers demanding a discussion of bribery allegations against the Adani Group, while major partner TotalEnergies halted investments into the ports-to-power conglomerate.
The Indian business group’s billionaire chairman, Gautam Adani, and seven other people were last week charged by US authorities with agreeing to pay around $265 million in bribes to Indian government officials.
The charges related to alleged payments to obtain contracts that could yield $2 billion of profit over 20 years, as well as to develop India’s largest solar power project.
The charges also included making misleading statements to the public despite being made aware of the US investigation in 2023.
The Adani Group has said the accusations as well as those levelled by the US Securities and Exchange Commission in a parallel civil case are baseless and that it will seek “all possible legal recourse”.
But the crisis continued to hurt the group founded by Adani, 62, one of the world’s richest people.
France’s TotalEnergies, which has a 20 per cent stake in Adani Green Energy Ltd and several other joint ventures with Adani companies, said on Monday that it will freeze further payments to the group.
“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the company said in a statement.
TotalEnergies rejects corruption in any form, it said, adding that it “was not made aware of the existence of an investigation into the alleged corruption scheme”.
Shares of Adani Green Energy plunged more than 11pc on Monday after the TotalEnergies statement before recovering to close 7.9pc lower, while Adani Total Gas ended down 1.4pc. The company did not immediately respond to a request for comment on TotalEnergies’ statement.
Parliament disrupted
The Adani group’s projects and businesses span the globe and some of them have come under the spotlight since the indictment in the US.
Last week, Kenyan President William Ruto cancelled a procurement process that had been expected to award control of the country’s main airport to Adani.
In Bangladesh, a panel examining power generation contracts, including one with Adani Power, urged the interim government to hire a global legal firm to ensure a thorough and transparent investigation into previous deals.
In India, opposition parties, who have consistently targeted Adani for what they say is his proximity to Prime Minister Narendra Modi, disrupted both houses of parliament seeking a discussion on the Adani allegations.
“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 at the global stage,” Mallikarjun Kharge, president of the main opposition Congress party, posted on X.
Jagdeep Dhankhar, the vice president of India and the chairman of the upper house, said he had received 13 notices from lawmakers demanding a discussion on the Adani issue but he could not allow them as they did not conform to the rules.
Dhankhar suspended the chamber for the day as lawmakers insisted on their demand, with similar scenes playing out in the lower house.
Indian opposition parties have in the past accused Modi’s government of protecting Adani and his businesses, charges both deny.
Modi’s opponents say he has longstanding ties with Adani, going back nearly two decades to when Modi was chief minister of the western state of Gujarat, from where Adani also comes.
They accuse the government of favouring the group in business deals, charges the government has rejected as “wild allegations”.
The government has not commented on the indictment but Modi’s Bharatiya Janata Party (BJP) has said that it is for the Adani Group to deal with and defend itself and that the law will take its course.
Mixed day for Adani stocks
Outside parliament, dozens of members and supporters of the youth wing of Congress marched in protest, carrying placards demanding Adani’s arrest and shouting slogans linking him to Modi. Some tried to jump over police barricades as they marched towards parliament and were detained and taken away in buses.
The crisis is the second in two years to hit the Adani group, which was last year accused by short-seller Hindenburg Research of improperly using offshore tax havens. The company denied those claims.
The disruption in parliament came as investors cut their exposure to the conglomerate, depressing Adani dollar bond prices.
Banks and regulators have been reviewing exposure to the group in the wake of the charges.
Some global banks are considering temporarily halting fresh credit to the company after the US indictment but maintaining existing loans, according to several bankers spoken to by Reuters.
In Asian trade on Monday, some of the most liquid debts, issued by Adani Ports and Special Economic Zone fell between 1 cent and 2 cents, with similar selling in Adani Transmission debt.
Adani group’s 10 listed stocks led by Adani Enterprises lost about $28bn in market value over two sessions last week after the US charges.
On Monday, five of the 10 stocks were trading in the red at 0932 GMT, with Adani Green, Adani Energy and Adani Power down between 3.5pc and 9pc.
