As per recent Adani news, the prosecutors from the US Attorney’s Office and Justice Department are currently looking at an Adani Group entity for a potential bribery investigation. This is yet another allegation brought up on the Adani Group after the Hindenburg crisis. However, taking into account the kind of transparency the Group maintains while carrying out its various operations, it is unlikely that the charges are going to hold ground. The same has been said by JP Morgan, one of the biggest companies on a global scale.
Why Did JP Morgan Plan On Extending Its Support to The Adani Group?
The CEO of JP Morgan has recently said that with the level of transparency involved in the renewable energy tenders that are floated in India, the scope for bribery and corruption is quite small. JP Morgan officials have also stated that the company is not going to change its views on the global conglomerate based on claims that do not contain adequate evidence. The details of the acquisition put forward against the Adani Group are very scant, and the investigation may not lead to any successful prosecution. It is also going to have a limited impact on the financial state of the Adani Group, which is why JP Morgan plans not to make changes to their recommendations for the Adani Group.
Within the Adani Group, JP Morgan will continue to favour Adani Ports, which has been doing extraordinary business in the port sector over the past few years. As of November 2023, Adani Ports has already received USD 553 million as a loan for the Colombo Port project in Sri Lanka from the US Government’s development financial arm, DFC. This might not imply a clean chit for the Adani Group. Still, it does indicate a high level of diligence being undertaken by the business group before making this huge investment.
The Charges Brought Against the Conglomerate:
The Adani Group was accused of favouritism on a recent energy project. However, no such strong evidence has been found so far against the business group. As per the Adani news report, there is a 12 GW manufacturing link solar energy project that was signed by Azure Power (4 GW) and Adani Green (8 GW) with the Solar Energy Corporation of India (SECI) in January 2020. The project is still under construction, and it does not form a part of any of the restricted group bonds between any of the two entities. However, the Adani Group has so far denied the charges placed against it. Other business groups from various corners of the world have also lent their support to the global conglomerate because of the Group’s extraordinary performance in the renewable energy sector.
Time and again, the Adani Group has taken up impeccable initiatives, which are mostly aimed at reforming communities and bringing about sustainability in India. The company has multiple ongoing projects as well, which will increase the country’s renewable energy capacity and lead the way to sustainability. Each of these renewable energy projects has contributed to making India self-sufficient in terms of its energy needs. The projects have also helped our country in transitioning from non-renewable to renewable energy sources. The company aims to take up more such projects in the future as well, which will not only lead our country to prosperity but will also build the way towards a cleaner and greener nation.
Adani Group’s Resilient Nature:
Now, this is not the first time the Adani Group has been falsely accused of wrongdoing. Previously, the Hindenburg Research also came up with a report accusing the Adani Group of various wrongdoings. The report contained accusations of stock manipulation and accounting fraud. After the Hindenburg Report’s publication, many investigations were conducted. The Supreme Court also specially appointed the SEBI to carry out various investigations against the Adani Group. However, no strong evidence has been found so far. As mentioned in Adani news, in January 2024, the Supreme Court was compelled to dismiss 22 charges against the Adani Group[DK1] with 2 still under investigation. This is indeed a big victory for the global conglomerate. It also showed the strong resilience of the conglomerate during times of difficulty.
Conclusion:
In this way, the Adani Group will continue to rise above false accusations and do its part for the country. It will also continue to take up more projects in various business sectors. This will not only help our country achieve economic stability but will also allow the Adani Group to build the reputation of being one of the most resilient business conglomerates on a global scale.
