Adani Group Faces Major Setback: Kenya Cancels ₹6217 Crore Power & Airport Deal After US Corruption Allegations
Kenya Cancels Power and Airport Expansion Deals
The Adani Group faces a significant international setback as Kenyan President William Ruto announced the cancellation of two key projects involving the group. These include a power transmission project and an airport expansion deal, both valued at ₹6217 crore. The decision came following allegations of corruption involving Adani Group by U.S. prosecutors.
Corruption Allegations Against Gautam Adani
American prosecutors have accused Gautam Adani and others of bribing Indian officials with $265 million (approx. ₹2200 crore) to secure solar energy contracts. The allegations led to a massive decline in the stock values of Adani Group companies.
U.S. Legal Actions
The U.S. Department of Justice and Securities and Exchange Commission (SEC) filed charges against Gautam Adani, his nephew Sagar Adani, and other officials. The allegations include fraud and bribery in securing contracts for solar energy projects in India.
Adani Group’s Official Response
The Adani Group has denied the allegations, calling them baseless. In an official statement, the company stated:
“The accusations made by the U.S. Department of Justice and SEC are unfounded. As per U.S. legal norms, all accused are presumed innocent until proven guilty.”
The group reaffirmed its commitment to maintaining the highest standards of transparency and regulatory compliance.
Bond Cancellation Amid Controversy
Following the allegations, the Adani Group canceled its planned $600 million bond issuance within hours of its announcement. This move was reportedly aimed at mitigating further financial and reputational risks.
Arrest Warrants Issued
Reuters reported that arrest warrants have been issued against Gautam Adani and Sagar Adani, with preparations underway to involve foreign law enforcement agencies.
Allegations on Misuse of Funds
Prosecutors accused the Adani Group of misusing $3 billion raised from U.S. investors and international lenders for unrelated purposes. Evidence of deleted emails and messages further intensified the case.
Adani Green Energy Projects in Focus
The corruption allegations primarily center on a solar energy project expected to generate over $2 billion in profits over 20 years. Allegedly, meetings and schemes to offer bribes were organized by key Adani Group officials to secure favorable outcomes for the project.
