New Delhi: Business tycoon Gautam Adani has faced yet another setback as the Kenyan government announced the cancellation of two major Adani Group projects. The decision follows allegations by a U.S. court accusing Adani, his nephew Sagar Adani, and several company officials of paying bribes amounting to $265 million (approximately ₹2,200 crore) to secure solar energy contracts in India.
Kenya Pulls Out Amid Controversy:
Kenyan President William Ruto made the announcement on Thursday, citing concerns over the corruption charges as the driving force behind the decision. The canceled projects, which were expected to play a significant role in Kenya’s renewable energy initiatives, mark a substantial blow to the Adani Group’s international ambitions.
President Ruto emphasized that Kenya prioritizes transparency and integrity in its dealings and cannot continue partnerships clouded by allegations of malpractice. This decision highlights the global fallout from the corruption charges and its impact on the group’s reputation.
Details of the Allegations:
The U.S. court alleges that Adani Group officials paid bribes to Indian government officials to secure favorable terms for solar energy contracts in Andhra Pradesh and Odisha. The accusations include using the funds to influence the procurement of overpriced solar projects in 2021, wherein Adani Group secured bids to supply 8,000 megawatts (8 gigawatts) of solar power using locally manufactured solar cells and modules.
Despite winning the bid, the group reportedly struggled to meet state governments’ price expectations, raising questions about the financial sustainability of the contracts.
Fallout and Global Implications:
The U.S. court’s accusations have not disclosed the names of the Indian officials allegedly involved in the bribery scandal. However, the charges have sent shockwaves across international markets and further tarnished the reputation of Gautam Adani, who remains India’s second-richest individual despite ongoing controversies.
The allegations have also heightened scrutiny of Adani Group’s global operations, with Kenya’s withdrawal signaling potential repercussions for other international projects. Kenya had positioned the canceled projects as crucial steps in its renewable energy strategy, and their abrupt termination could impact both parties.
Adani Group’s Defense:
Adani Group has yet to release a detailed statement addressing the Kenyan cancellations or the U.S. court’s bribery allegations. The company has previously maintained its compliance with regulatory norms and denied wrongdoing in other financial and operational probes.
A Tumultuous Year for Adani:
This development is the latest in a series of controversies surrounding Gautam Adani and his business empire. Earlier this year, the Adani Group faced a damning report by U.S.-based Hindenburg Research, accusing the conglomerate of stock manipulation and fraud. While the group denied the allegations, the report triggered a sharp decline in Adani Group’s stock prices and raised questions about its governance practices.
The cancellation of Adani Group’s projects by Kenya underscores the mounting challenges faced by the conglomerate amid growing international scrutiny. As the legal proceedings in the U.S. unfold, the ripple effects of these allegations could further impact the group’s global operations and financial stability. For Gautam Adani, this represents another critical juncture in his journey from a meteoric rise to increasing controversy on the global stage.
