‘India should be more interested than US’: Editorials on Adani allegations

The US indictment of Adani Group chairman Gautam Adani and seven of his executives in a $265 million bribery scheme involving government solar power contracts has sparked a new wave of controversy.

A series of text messages have emerged detailing suspicious transactions pointing to alleged bribery, while the billionaire businessman’s links with Prime Minister Narendra Modi are also under the scanner.

Besides, what did the editorials say about the Adani controversy?

noted that it will be tougher for Adanis this time, given the SEC charges and the potential impact on fundraising.

“It is rare for a large corporate group to be caught up in multiple controversies in a short period of time. And when they do, the process of defending yourself extracts a cost. And it is not a good image globally for a conglomerate like the Adani group with operations in several countries. It will be difficult to raise funds in the US for the foreseeable future. Some side effects on other international fund options will not be surprising. Even in India, investors in the group, after recovering their earlier losses, were hit again. Some caution in the group’s home country cannot be ruled out among investors and creditors. Adanis’ core business is building/managing infrastructure of various types. This makes them a capital-deferred group and therefore dependent on large sources of funding. Adanis strategists will know that Trump, in his first term, wanted to scrap the Foreign Corrupt Practices Act, arguing that it was unfair to American companies doing business abroad. However, hoping that Trump 2.0 will pass with repeal may not be the best strategy. Trump has many other irons in the fire.”

The said India should be more interested than US agencies in finding out the truth about the allegations.

“The Adani group is considered close to Prime Minister Narendra Modi and the BJP, but that should not give the group a shield against allegations of wrongdoing. The group has denied the allegations, but a blanket denial is not a credible response. Whenever allegations are leveled against the Adani group, the BJP is seen as directly or indirectly defending it. The party has now said the law will take its course, but the government has a responsibility to ensure it does.

“Opposition parties have called for a joint parliamentary inquiry into the allegations. The indictment has all the makings of a new Bofors—allegations coming from a foreign country, bribe payments for a contract, diary-like payment documents and records, and code names—though Congress would be wary of using the B word.”

noted that a Supreme Court-monitored inquiry is needed to get to the bottom of this murky issue.

“The indictment also drew attention to the ongoing investigation by the Securities and Exchange Board of India (SEBI) into allegations by US-based short seller Hindenburg Research of ‘outrageous stock manipulation and accounting fraud’ by the Adani Group. Ironically, SEBI’s own credibility took a hit after chairman Madhabi Buch and her husband were accused by Hindenburg of holding stakes in shady offshore entities that were allegedly used in the Adani “money laundering scandal”. Can a fair and transparent investigation be expected when the investigator himself is under scrutiny? Buch continues to be at the helm of India’s market regulator, even though he skipped a crucial meeting of Parliament’s Public Accounts Committee last month. There are too many questions waiting to be answered, and the Indian government should make no effort to finally clear the air.”

also stressed the need for an investigation.

“Questions have been raised in the past about investigations by the Indian regulator into some of the allegations that have been made against the Adani Group – Hindenburg has previously sought to draw links between what it perceived as regulatory inaction towards Sebi chairman investments. After a few days in Parliament, the indictment raises questions that must be answered. Given that the ripple effects of what happens to the Adani Group can be felt on the stock market and in the wider economy — the Adani Group is one of the country’s largest conglomerates, with its business interests spanning a wide range of sectors , from ports, airports, electricity. , including renewables, media cement, among others – all regulatory authorities involved must now investigate the allegations in a transparent and timely manner. The spokesperson’s claim that this could be part of an ‘international structure’ designed to undermine Indian markets is not a convincing answer – it insults the intelligence of the Indian investor.”

said Indian citizens certainly have a right to know whether bribes were passed on to others and whether SECI was just a conduit. “The allegations will have wider ramifications for the Adani Group, which borrows heavily in overseas bond markets, and will damage its credibility. Given that lenders will become more cautious, the balance sheet of leveraged groups could continue to be strained. The bigger question is what the episode will do to tarnish India Inc’s reputation and whether it would have negative effects on companies accessing international markets.”

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