India’s Parliament is abuzz with tensions as lawmakers continue to disrupt proceedings over serious allegations against billionaire Gautam Adani and his conglomerate. The opposition is demanding a substantive discussion regarding the recent indictment from U.S. authorities.
Ongoing Parliamentary Disruptions
Both houses of Parliament were suspended for a third consecutive day on 27 November 2024, with opposition lawmakers from the Congress party calling for accountability. They’re seeking a response from Prime Minister Narendra Modi regarding accusations of a US$265 million bribery scheme linked to Adani Group.
- Adani, his nephew Sagar, and Adani Green’s managing director, Vneet S. Jaain, face allegations of misleading U.S. investors.
- Members of Congress, including Rahul Gandhi, have openly demanded Adani’s arrest, citing the indictment as a significant breach of trust.
Government’s Position
The ruling Bharatiya Janata Party (BJP) has distanced itself from the controversy. A BJP spokesperson stated, “Let him defend himself,” implying that the law will handle any wrongdoing. This approach raises questions about the level of scrutiny the government is willing to impose on one of India’s richest men.
Impact on Adani Group
In the wake of these allegations, the market reacted dramatically. As of 27 November 2024, shares of Adani Group companies saw a recovery, regaining approximately US$9 billion in market value after losing up to US$34 billion since the indictments were announced.
- Despite the recovery, Adani Green remains down about US$8 billion in total value.
- Major partners like TotalEnergies have paused investments, signalling a potential rift due to the ongoing scandal.
International Consequences
In addition to domestic unrest, this issue has prompted international fallout. For instance, Kenya has halted procurement processes valued over US$2 billion that would have benefitted the Adani Group, further complicating the billionaire’s interests abroad.
The allegations have jolted both the political and economic landscapes in India. As the dust settles, many are closely watching how the government and Adani will respond in the coming weeks.