TotalEnergies, a large French energy company, has decided to stop making new investments in the Adani Group due to serious bribery allegations involving Gautam Adani, the chairman of the conglomerate.
The company, which has invested between $4 billion and $5 billion in Adani companies, announced that it will pause any new financial contributions until the full details of the accusations are investigated and cleared up.
The bribery scandal came to light in November 2024 when U.S. prosecutors charged Adani and other executives for their role in a $250 million bribery scheme.
The charges suggest that the Adani Group paid bribes to Indian government officials to secure big contracts for Adani Green Energy, a subsidiary focused on renewable energy projects.
These projects, particularly a large solar plant, were expected to bring in profits of over $2 billion over 20 years.
In addition to bribery, the charges include fraud and the manipulation of information provided to international investors.
Prosecutors also claim that some of the executives tried to cover up their actions by deleting important electronic evidence.
This has raised alarms not just in the U.S., but also globally, as the Adani Group is involved in many large infrastructure and energy projects, attracting investments from around the world.
TotalEnergies stated that it was not aware of the corruption before the charges were made public, and it will not invest further in Adani Group until the situation is fully understood.
This is a big move for TotalEnergies, as the company has been involved in energy projects with Adani, including renewable energy ventures in India.
The bribery charges are the latest in a series of scandals involving the Adani Group. In 2023, the company faced accusations of fraud and stock manipulation from Hindenburg Research.
This led to a significant drop in the value of Adani’s stocks and has made investors more cautious about their involvement with the group.These events highlight the risks companies face when doing business in countries where corruption can be a concern.
TotalEnergies’ decision to pause investments in the Adani Group shows how serious these allegations are and the importance of transparency and integrity in business dealings.
It also raises questions about the future of the Adani Group and whether it will be able to recover from this legal and financial crisis.
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