How the US indictment on Adani could affect India’s Modi and the ruling BJP

The indictment of Indian tycoon Gautam Adani on bribery charges by US authorities has raised questions about his close ties to Prime Minister Narendra Modi and created political fodder for opposition parties ahead of key state elections, analysts say .

U.S. prosecutors accused Adani and his nephew of orchestrating a $265 million scheme to bribe Indian officials to win power deals.

The explosive allegations come at a crucial time, coinciding with the end of state elections in Maharashtra and Jharkhand.

The allegations against Adani wiped out billions of dollars in domestic stock market trading on Thursday, with Adani Group companies shedding more than $26 billion in market capitalisation. Adani Group shares extended losses early on Friday but partially recovered later in the day.

“The indictment of Adani Group chairman and other senior officials on bribery charges is a credit negative for the group companies,” Moody’s Ratings said in a statement on Thursday. The rating agency said the allegations raised concerns about the conglomerate’s governance practices and its ability to meet liquidity requirements.

Adani Group quickly denied the allegations, calling them “baseless” and saying it would pursue “all possible legal avenues” against the allegations brought by the US Department of Justice and the Securities and Exchange Commission.