New Delhi — Gautam Adani’s ambitious plans to build the world’s largest renewable energy project are facing a significant setback following a U.S. bribery indictment. Adani, along with his nephew Sagar Adani and managing director Vneet S. Jaain, is accused of paying $265 million in bribes to secure Indian power contracts and misleading U.S. investors during fundraising efforts.
The charges have sent shockwaves through Adani Green, the flagship company behind a massive renewable energy park in Gujarat, which aims to generate 50 gigawatts by 2030. The project, slated to be five times the size of Paris, has become a cornerstone of India’s clean energy future. However, the company’s stock has fallen 36% since the indictment, wiping out $9.6 billion in market value.
The U.S. indictment has also triggered a pullback from key investors. TotalEnergies, which owns nearly 20% of Adani Green, has suspended further investments, citing a lack of prior knowledge about the bribery case. The Qatar Investment Authority, holding a 2.7% stake, has refused to comment, while GQG Investors, with a 4.2% stake, has expressed confidence in the company’s fundamentals.
Despite the setback, Adani Group maintains that the allegations are baseless, and the company is committed to pursuing all legal avenues. Adani Green, which has seen a remarkable 10,000% increase in its stock price between 2018 and 2022, is aiming to hit its target of 50 GW by 2030, despite the regulatory hurdles it now faces. The Khavda energy park, described by Adani as a “renewable energy marvel,” remains a focal point of the group’s vision for India’s green energy future.