India's parliament was adjourned on Monday amid opposition protests demanding a debate on corruption allegations against the Adani Group. On the same day, French company TotalEnergies announced the suspension of new investments with the Adani Group. British news agency Reuters reported this news.
Last week, US authorities charged Adani Group chairman Gautam Adani and seven others with conspiring to pay nearly $265 million in bribes to Indian government officials. The money is allegedly intended to win tenders for the development of India's largest solar power project and a profit of about $2 billion over 20 years.
In addition, the complaint said, misleading information was given to the public despite knowing about the US investigation. The Adani Group termed the allegations baseless and said it would take legal action.
TotalEnergies investment suspended
France's TotalEnergies owns 20 percent stake in Adani Green Energy Limited. The company said on Monday that it will not make any new investments until the allegations leveled against the Adani Group are clarified.
TotalEnergies statement said, We do not support corruption in any way. We were not aware of the investigation against Adani Group.
After the announcement, Adani Green Energy's share price fell by more than 11 percent at one point. But the market settled down 7.9 percent before the close.
Heated situation in Parliament
The Speaker was forced to suspend the proceedings when the opposition lawmakers in the Parliament demanded a discussion against the Adani Group. Rajya Sabha Chairman Jagdeep Dhankhar said that 13 notices have been submitted seeking discussion on this matter, but they were not approved as they were not in accordance with the rules.
Mallikarjun Kharge, president of the main opposition Congress, said the government's first step should be a detailed discussion on the Adani issue, which could damage India's global image.
The BJP, while not commenting on the matter, said the Adani Group would deal with the allegations leveled against them and the law would take its own course.
International influence
Various projects of the Adani Group have come under the international spotlight following the US complaint. Last week, Kenyan President William Ruto scrapped plans to give Adani control of Kenya's main airport. A review panel has also recommended the appointment of a global lawyer to investigate power deals in Bangladesh.
This is the second major crisis for the Adani Group in the last two years. Last year Hindenburg Research accused the Adani Group of tax evasion. which the group denies.
Shares of Adani Group's 10 listed companies fell by nearly $28 billion in two days following the allegations. Shares of five of these companies fell again on Monday.
The crisis has posed serious challenges for the Adani Group and the Government of India. The opposition has raised questions about the long-standing relationship between Adani and Prime Minister Narendra Modi, but the government has dismissed these allegations as baseless.
