Industrialist Gautam Adani, the head of the Adani Group, is facing serious accusations from US prosecutors.
They claim that he paid $250 million in bribes and committed fraud to secure favorable solar power contracts in India.
These deals are said to have been made with the help of Indian officials. However, the Adani Group has strongly denied these allegations, labeling them as baseless.
Sanghi Industries Shares Drop Amidst Market Chaos
In the wake of these allegations, shares of Adani Group companies have seen major losses in the stock market.
On a turbulent day, Sanghi Industries Limited, the cement arm of the Adani Group, experienced a 10% drop in its share price. The stock fell to Rs 73, hitting an intraday low of Rs 73.50 from its previous closing price of Rs 81.53.
The 52-week high for Sanghi Industries shares stands at Rs 156.20, while the 52-week low is Rs 71.66. Currently, the company’s market capitalization is Rs 1,974.39 crore.
The shareholding pattern shows that 75% of the company’s shares are held by promoters, with Ambuja Cement owning 58.08% of Sanghi Industries. Ambuja Cement is a part of the Adani Group.
The Legal Battle and Bribery Accusations
The US authorities have filed a criminal case in a New York court, accusing Gautam Adani, his nephew Sagar Adani, and others of bribing state officials, particularly from Andhra Pradesh, to secure overpriced solar power contracts.
This would allow the Adani Group to make more than two billion dollars in profit over the next 20 years. Azure Power, a New Delhi-based company, is also reportedly involved in the alleged scheme.
In addition, the US Securities and Exchange Commission has accused Gautam and Sagar Adani, along with an Azure Power officer, of violating federal securities laws related to fraud.
Details of the Legal Case Against Adani
The accusations against Gautam Adani come from the US, where he is charged with bribery and securities fraud in two separate cases.
The US Justice Department has filed a criminal indictment in a New York court, accusing Adani and several others, including his nephew Sagar Adani, of bribing state government officials in places like Andhra Pradesh.
This alleged corruption was aimed at securing overpriced solar power contracts, with the goal of generating over two billion US dollars in profit over the next 20 years.
Additionally, the US Securities and Exchange Commission (SEC) has accused both Gautam and Sagar Adani, as well as an officer from Azure Power, of violating anti-fraud provisions of federal securities laws.
