Gautam Adani's Billion-Dollar Empire in Crisis: French Oil Major TotalEnergies Halts Financial Contributions Amid Bribery Scandal
In a stunning blow to Indian billionaire Gautam Adani, French oil major TotalEnergies announced on Monday that it will stop financial contributions to its Adani Group investments following the indictment of Adani Green Energy Limited and seven other individuals, including Adani himself, with bribery and corruption charges.
TotalEnergies, which holds a 20% stake in Adani Green Energy and has a board seat, stated that it was not informed about a US investigation into alleged bribery and corruption at Adani Green Energy until recently. The company added that its investments in the Adani Group of companies will remain "frozen" until the consequences of the accusations against the Adanigroup individuals have been clarified.
"This decision affects several projects and businesses owned by the Adani Group, including our renewable joint ventures," TotalEnergies said in a statement. "We take allegations of corruption and bribery extremely seriously and expect the Adani group to fully disclose any relevant information."
The US Department of Justice charged eight people, including Gautam Adani, his nephew Sagar Adani, and the former CEO of Adani Green Energy, with promising and then making improper payments to Indian officials between July 2021 and 2024 to secure business advantages. The charges are related to alleged bribes of around $265 million.
The suspension of financial contributions by TotalEnergies has sent shockwaves through the global energy market and raises concerns about the stability of Adani's businesses, which have operations in several countries including India, Sri Lanka, Kenya, and Bangladesh.
Analysts at Bernstein Research estimate that TotalEnergies' financial exposure to Adani firms could reach around $4-5 billion. The incident has also sparked criticism within India regarding disclosure standards, with lawmakers demanding a discussion in parliament over the allegations.