By YP Rajesh and America Hernandez
NEW DELHI/PARIS (Reuters) – India's parliament was suspended on Monday after lawmakers demanding a discussion on bribery allegations against the Adani Group were interrupted, while its main partner TotalEnergies (EPA:) halted proceedings. investments in the ports-to-energy conglomerate.
The Indian business group's billionaire chairman, Gautam Adani, and seven others were charged last week by US authorities with agreeing to pay about $265 million in bribes to Indian government officials.
The charges related to alleged payments to obtain contracts that could generate $2 billion in profits over 20 years, as well as to develop India's largest solar energy project.
The charges also included making misleading statements to the public despite being informed of the US investigation in 2023.
The Adani Group has said the allegations, as well as those leveled by the U.S. Securities and Exchange Commission in a parallel civil case, are unfounded and that it will pursue “all possible legal remedies.”
But the crisis continued to hurt the group founded by Adani, 62, one of the richest people in the world.
French company TotalEnergies, which has a 20% stake in Adani Green Energy (NS:) Ltd and several other joint ventures with Adani companies said on Monday they will freeze further payments to the group.
“Until the allegations against the individuals of the Adani group and their consequences are clarified, TotalEnergies will not make any new financial contributions as part of its investments in the Adani group of companies,” the company said in a statement.
TotalEnergies rejects any form of corruption, it said, adding that it was “not aware of the existence of an investigation into the alleged corruption scheme.”
Adani Green Energy shares plunged more than 11% on Monday after TotalEnergies' statement before recovering to close down 7.9%, while Adani Total Gas closed with a drop of 1.4%. The company did not immediately respond to a request for comment on TotalEnergies' statement.
PARLIAMENT INTERRUPTED
The Adani group's projects and businesses are spread across the world and some of them have been in the spotlight since the indictment in the US.
Last week, Kenyan President William Ruto canceled a procurement process that was expected to give control of the country's main airport to Adani. In Bangladesh, a panel examining power generation contracts, including one with adani power (NS:), urged the interim government to hire a global legal firm to ensure a thorough and transparent investigation of previous agreements.
In India, opposition parties, which have consistently attacked Adani for what they say is his proximity to Prime Minister Narendra Modi, disrupted both houses of parliament seeking a discussion on Adani's allegations.
“The first step the government should take is to have a detailed discussion on the Adani saga, which has the potential to tarnish India's image on the global stage,” Mallikarjun Kharge, president of the main opposition Congress party, posted on x.
Jagdeep Dhankhar, vice president of India and speaker of the upper house, said he had received 13 notices from lawmakers demanding a debate on the Adani issue, but could not allow them because they did not conform to the rules.
Dhankhar adjourned the house for the day as lawmakers pressed their demand, and similar scenes played out in the lower house.
Indian opposition parties have in the past accused the Modi government of protecting Gautam Adani and his businesses, accusations both deny.
Modi's opponents say he has long-standing ties with Adani, dating back almost two decades, when Modi was chief minister of the western state of Gujarat, where Adani also hails from.
They accuse the government of favoring the group in trade deals, accusations the government has rejected as “wild accusations.”
The government has not commented on the allegation, but Modi's Bharatiya Janata Party (BJP) has said it is up to the Adani Group to try and defend itself and that the law will take its course.
MIXED DAY FOR ADANI stocks
Outside Parliament, dozens of members and supporters of Congress's youth wing marched in protest, carrying banners demanding Adani's arrest and shouting slogans linking him to Modi. Some tried to jump over police barricades as they marched towards parliament and were detained and taken away on buses.
The crisis is the second in two years to hit the Adani group, which last year was accused by short seller Hindenburg Research of improperly using offshore tax havens. The company denied those claims.
The disruption in parliament came as investors reduced their exposure to the conglomerate, depressing prices for Adani's dollar bonds.
and regulators have been reviewing exposure to the group in the wake of the charges.
Some global banks are considering temporarily suspending new credit to the company after the US indictment, but maintaining existing loans, according to several bankers Reuters spoke to.
In Asian trading on Monday, some of the most liquid debts, issued by Adani Ports and the Special Economic Zone, fell between 1 cent and 2 cents, with similar selling in Adani Transmission debt.
Adani group's 10 listed stocks led by Adani Companies (NS:) lost around $28 billion in market value in two sessions last week after the US allegations.
On Monday, five of the 10 stocks were trading in the red at 0932 GMT, with Adani Green, Adani Energy and Adani Power falling between 3.5% and 9%.
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