The winter session of parliament was put on hold on Monday after Opposition leaders demanded discussion on United States $265 million bribery charges against India’s conglomerate Adani Group’s seven members, including chairman, Gautam Adani. Due to this Adani dollar bond prices fell to one-year low as investor and lenders weighed the future of stocks.
The allegations pertain to purported payments made to secure contracts potentially yielding $2 billion in profits over two decades and to facilitate the development of India’s largest solar power project. Additionally, the charges claim the group misled the public despite being informed about the U.S. investigation in 2023. The Adani Group has dismissed these accusations, as well as those by the U.S. Securities and Exchange Commission in a related civil case, labeling them as baseless and vowing to pursue “all possible legal remedies.”
“It is unfortunate that the govt did not address or react to this issue (Adani row). The Chairman informed us that we cannot raise this matter under Rule 267, as earlier decisions were taken not to allow such topics. But, Rule 267 exists precisely for urgent matters like the Manipur and Sambhal incidents. We demand a JPC (Joint Parliamentary Committee) be constituted to investigate this case thoroughly and bring clarity,” says Congress President Mallikarjun Kharge on the Adani row discussed in the Winter Session of Parliament earlier today.
Telangana Chief Minister Revanth Reddy says, “Many companies have given funds to the Young India Skill University. In the same way, the Adani group also gave Rs 100 crores. Yesterday, we wrote a letter to Adani on behalf of govt stating that the state govt is not ready to accept the Rs 100 crores given by Adani group.. I like to reiterate the decision by the state govt to not accept the Rs 100 crores from Adani group.”
Political Reactions and Parliamentary Disruptions
Indian opposition parties, who frequently criticize Adani for his alleged ties to Prime Minister Narendra Modi, have pledged to raise the issue in parliament. Mallikarjun Kharge, leader of the opposition Congress party, demanded a detailed parliamentary debate on the “Adani saga,” emphasizing that the matter could tarnish India’s global reputation and jeopardize investments made by millions of retail investors.
As parliament commenced its session, Vice President and upper house chairman Jagdeep Dhankhar acknowledged receiving 13 notices demanding a discussion on Adani but declined them, citing procedural non-compliance. Attempts to proceed with regular business were disrupted by lawmakers, leading to multiple suspensions of the session.
Allegations of Favouritism
Opposition leaders have long accused Modi’s government of protecting and favoring Adani, citing their relationship dating back to Modi’s tenure as Gujarat’s chief minister. Both the government and Adani have denied these claims, dismissing them as unfounded. The ruling Bharatiya Janata Party (BJP) has stated that the Adani Group will handle the legal challenges independently and that the law will take its course.
Impact on Markets and Banking Sector
The indictment has triggered a sell-off in Adani dollar bonds, with some banks reportedly reconsidering fresh lending to the group. In response, the Monetary Authority of Singapore clarified that the exposure of its banking sector to Adani is minimal, with measures in place to monitor and manage borrower risks. DBS Group, Singapore’s largest bank, earlier disclosed a S$1.3 billion ($967 million) exposure to the Adani Group but declined further comment.
Despite market concerns, the Adani Group emphasized its financial resilience, reporting cash reserves of $6.33 billion as of the first half of FY25—enough to cover long-term debt repayments for 28 months. The group also highlighted its commitment to regular financial disclosures and robust credit performance.
Market Performance
The allegations mark the second major crisis for the Adani Group in two years, following accusations in 2022 by Hindenburg Research regarding improper use of offshore tax havens—claims the company denied.
In Asian markets on Monday, Adani Ports and SEZ bonds maturing in 2027 dropped by 1.6 cents, while longer-dated bonds saw declines of 8 to 10 cents since the charges emerged. Adani Transmission debt maturing in 2036 also fell by 1.8 cents, compounding a broader decline across the group’s debt instruments.
Also read: SP MP Zia Ur Rehman Barq Denies Sambhal Violence Allegations, Calls Case a Conspiracy
Adani’s 10 listed stocks, led by Adani Enterprises, lost $27.9 billion in market capitalization over two sessions following the U.S. charges. On Monday, however, eight of the 10 stocks showed recovery in early trade, though gains were muted. Adani Energy Solutions reversed its upward trend to trade approximately 2% lower.
