In a dramatic turn of events, Indian billionaire Gautam Adani has relinquished his role as Executive Chairman of Adani Ports and Special Economic Zone (APSEZ), India’s largest private port operator, which handles 28% of the nation’s cargo.
Adani, now a non-executive chairman, cited compliance with India’s Companies Act, which restricts full-time directors from holding executive roles across multiple companies.
However, the timing of his exit—amid US investigations into alleged sanctions violations and a $250 million bribery scandal—has sparked speculation about the stability of his sprawling $147 billion business empire.
With Kenya cancelling $2.6 billion in infrastructure deals and APSEZ shares dropping 2%, questions loom: is this the beginning of the end for the Adani juggernaut?
The Fall of a Titan?
Gautam Adani, once India’s second-richest man with a net worth peaking at $127 billion in 2022, has been a towering figure in India’s economic landscape.
His conglomerate, the Adani Group, spans ports, airports, coal mines, renewable energy, and more, aligning closely with Prime Minister Narendra Modi’s infrastructure and clean energy priorities. Adani’s rise from a high school dropout to a global tycoon was marked by strategic acquisitions, such as Mundra Port in Gujarat, now India’s largest, and a bold pivot toward green energy with ambitions to become the world’s largest renewable energy producer by 2030.
Yet, his empire has faced relentless scrutiny, from allegations of crony capitalism to financial misconduct.
The latest blow came in November 2024, when US prosecutors in New York indicted Adani, his nephew Sagar Adani, and six others for allegedly orchestrating a $265 million bribery scheme to secure solar energy contracts in India.
The US Department of Justice (DOJ) and Securities and Exchange Commission (SEC) allege that between 2020 and 2024, Adani and his associates paid bribes to Indian officials in Andhra Pradesh and Odisha to win contracts expected to yield $2 billion in profits over 20 years.
The indictment claims Adani Green Energy raised over $3 billion in loans and bonds, including $175 million from US investors, by concealing the bribery scheme and misrepresenting anti-corruption compliance. Adani was charged with securities fraud, wire fraud conspiracy, and violations of the Foreign Corrupt Practices Act (FCPA).
The fallout was swift.
Adani Group stocks plummeted, wiping out $34 billion in market value on 21 November 2024, with Adani Green Energy dropping 19%. The group scrapped a $600 million bond sale, and Adani’s personal net worth fell by nearly $16 billion to $54 billion, according to Forbes.
Arrest warrants were issued for Gautam and Sagar Adani, though their whereabouts remain unclear, with Adani believed to be in India.
Global Ripples: Kenya’s Cancellation and Beyond
The US indictment reverberated globally, most notably in Kenya, where President William Ruto cancelled two major deals with the Adani Group worth $2.6 billion on 21 November 2024.
The first, a $1.85 billion, 30-year lease to operate and upgrade Nairobi’s Jomo Kenyatta International Airport, faced public backlash and a court injunction over transparency concerns and fears of job losses. The second, a $736 million public-private partnership to build power transmission lines, was also axed, despite initial support from Kenya’s Energy Minister Opiyo Wandayi. Ruto cited “new information from investigative agencies and partner nations” as the reason, underscoring the weight of the US charges.
Elsewhere, Adani faces challenges in Bangladesh, where a government panel is probing a power supply contract signed under former Prime Minister Sheikh Hasina, a Modi ally ousted in August 2024. In Sri Lanka, a US-funded port project involving Adani is under review, raising concerns about India’s strategic competition with China in the region.
A History of Controversy
This is not Adani’s first brush with scandal.
In January 2023, US short-seller Hindenburg Research accused the Adani Group of “brazen stock manipulation and accounting fraud” over decades, triggering a $68 billion market value crash.
The report alleged the group used offshore shell companies to inflate stock prices and hide debt. Adani denied the claims, and India’s Supreme Court later ruled in the group’s favor, allowing a partial recovery.
However, the US indictment and ongoing SEC probe into alleged sanctions violations involving Iranian liquefied petroleum gas imports via Mundra Port have reignited doubts about the group’s governance.
Critics, including India’s opposition leader Rahul Gandhi, have long accused Adani of benefiting from close ties to Modi, both hailing from Gujarat.
Allegations of “crony capitalism” intensified after Modi flew on Adani’s private plane in 2014 and the group secured major contracts under Modi’s government.
Gandhi has called for Adani’s arrest and a parliamentary probe, claiming the US charges validate suspicions of corruption. The Adani Group denies any political favoritism, emphasizing its compliance with all laws.
Adani’s Response and Strategic Shift
Adani has remained defiant, stating on 30 November 2024 that his conglomerate is committed to “world-class regulatory compliance” and will pursue “all possible legal recourse.”
The group insists the US charges are allegations, with defendants presumed innocent until proven guilty.
Adani’s step back from APSEZ’s executive role, effective August 2025, was framed as a governance move, with managing director Karan Adani and CEO Ashwani Gupta taking the helm.
Yet, analysts see it as a calculated retreat to shield APSEZ, a crown jewel handling 600 million tonnes of cargo annually, from further fallout.
The Adani Group’s global ambitions are now at risk.
The cancellation of Kenya’s deals and scrutiny in Bangladesh and Sri Lanka could deter international partners, particularly in the US, where Adani recently pledged $10 billion in investments.
Moody’s Ratings called the indictment a “credit negative,” warning of liquidity challenges, while US investor GQG Partners, with $10 billion in Adani stakes, is “monitoring” the situation.
The Bigger Picture: India’s Economic and Political Stakes
The Adani Group’s dominance in India’s infrastructure—operating seven airports, 13 ports, and major coal and renewable energy projects—makes it integral to the economy, employing tens of thousands. Its collapse could disrupt critical sectors and dent India’s image as an investment destination, especially as it courts global firms seeking alternatives to China.
However, the allegations threaten India’s ties with the US, particularly under a new Trump administration, which Adani publicly supported post-election.
Politically, the scandal is a lightning rod.
Opposition parties, led by Congress, are leveraging the US charges to pressure Modi’s Bharatiya Janata Party (BJP) ahead of India’s parliamentary winter session.
The Securities and Exchange Board of India (SEBI) faces scrutiny for its slow response to earlier allegations, with calls to investigate under its bilateral agreement with the SEC.
Policy Recommendations
To address the crisis and prevent future governance failures, policymakers in India and globally should consider the following:
- Strengthen Anti-Corruption Frameworks: India must bolster enforcement of the Prevention of Corruption Act and align with international standards like the FCPA. Independent audits of public-private partnerships (PPPs) can enhance transparency, especially for mega-projects involving foreign investment.
- Enhance Regulatory Oversight: SEBI should expedite its probe into Adani’s dealings and establish stricter disclosure norms for conglomerates with significant market influence. A dedicated task force for cross-border financial misconduct, in collaboration with the US SEC, could deter fraud.
- Protect Whistleblowers and Journalists: India’s weak protections for whistleblowers and journalists investigating corporate malfeasance must be addressed. A robust legal framework, inspired by the US Whistleblower Protection Act, could encourage exposés without fear of retaliation.
- Review PPP Transparency: Kenya’s cancellation highlights the need for transparent bidding in PPPs. Governments should mandate public disclosure of contract terms and conduct impact assessments to ensure value for money and protect workers’ rights.
- Diversify Infrastructure Dependence: India should reduce reliance on single conglomerates like Adani by encouraging competition in critical sectors. Incentives for smaller firms and foreign investors can mitigate risks of monopolistic practices.
- International Cooperation on Sanctions: The US and India should strengthen coordination to enforce sanctions, particularly on Iranian trade. Clear guidelines for port operators like APSEZ can prevent inadvertent violations and restore investor confidence.
What’s Next for Adani?
Adani’s legal battles are far from over.
A trial in the US could take years, and extradition remains uncertain under the US-India treaty.
If convicted, Adani faces decades in prison and hefty fines, though his legal team is likely to challenge the charges aggressively. In India, political pressure may force SEBI to act, but Modi’s government has so far remained silent, wary of alienating a key ally.
For now, Adani’s empire is wounded but not broken.
Its diversified portfolio and domestic dominance provide resilience, but rebuilding trust will be an uphill battle. As Nirmalya Kumar of Singapore Management University noted, “This is a body blow to Adani’s image, but investors may return given the group’s role in India’s growth story.”
Whether Adani can weather this storm depends on his ability to navigate legal, financial, and political minefields—both at home and abroad.
The world is watching.
Will the Adani juggernaut adapt and survive, or is this the endgame for one of India’s most powerful tycoons?
Sources: Al Jazeera, Business Standard, Reuters, The Guardian, BBC, Forbes, AP News, The New York Times, PBS News, gcaptain, gulfnews.com, livemint.com, cnbctv18.com
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