Gautam Adani, one of the wealthiest men in the world, cheered Donald Trump’s election win a few weeks ago and declared his intention to invest $10 billion (£7.9 billion) in infrastructure and energy projects in the United States.
The 62-year-old Indian billionaire, who is close to Prime Minister Narendra Modi and whose $169 billion business includes renewable energy and ports, is now facing US fraud allegations that could put his goals both domestically and internationally in jeopardy.
He has been charged by federal prosecutors with planning a $250 million bribery plot and hiding it in order to gather funds in the United States.
They claim that in order to obtain contracts worth $2 billion in earnings over a 20-year period, Mr Adani and his colleagues bribed Indian officials. The Adani Group has rejected the claims, describing them as “baseless.”
However, the group and the Indian economy are already suffering as a result of this.
The market capitalisation of Adani Group companies dropped by $34 billion on Thursday, bringing the total market capitalisation of its 10 businesses down to $147 billion. The company at the heart of the accusations, Adani Green Energy, also said that it would not move forward with a $600 million bond sale.
The allegations’ effects on Indian politics and business are also a matter of concern.
India’s top infrastructure billionaire, Mr. Adani, is closely linked to the nation’s economy. He runs India’s second-largest cement company (20% of the market), seven airports (23% of passenger traffic), and thirteen ports (30% of the market).
BBC.
