TotalEnergies SE, the French energy giant, announced it will halt all new investments in the Adani Group following US bribery indictments against Adani Group founder Gautam Adani and others, Bloomberg reports.
The decision casts a shadow over the Indian conglomerate’s ambitious expansion plans and deals a blow to TotalEnergies’ own growth strategy in India.
The move comes in the wake of allegations by US federal prosecutors that Adani and associates allegedly offered over $250 million in bribes to secure solar energy contracts for Adani Green Energy Ltd (AGEL). These accusations, filed last week, follow a controversial report from short-seller Hindenburg Research almost two years ago, which accused the Adani Group of widespread fraud and market manipulation. The Adani Group has vehemently denied all allegations.
TotalEnergies, which holds a 19.75% stake in AGEL and owns 50% stakes in three joint ventures with the company, stated it will not make any further financial contributions to Adani Group companies until the accusations are fully investigated and resolved.
“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” the company said in a statement on Monday.
The announcement sent shockwaves through the market, with shares of Adani Green Energy plummeting as much as 11% in Mumbai trading. TotalEnergies emphasized that it is not implicated in the alleged bribery scheme and intends to safeguard its interests as a minority shareholder and joint-venture partner. The company stated it will “take all relevant actions to protect its interests.”
