Power Grid

France's TotalEnergies announced that it will not pursue new investments in Adani Green Energy Limited (AGEL) until Indian billionaire Gautam Adani, the company’s principal owner, addresses allegations of corruption raised in the United States.

Last week, U.S. prosecutors accused Adani of orchestrating a scheme to pay over $250 million in bribes to Indian government officials to secure solar energy contracts.

Prosecutors claim Adani and his associates misrepresented facts about solar contracts while soliciting funds from U.S. investors. The indictment, citing violations of federal laws, implicates eight individuals, including Adani, his nephew Sagar R. Adani, and Venet S. Jain, executives at AGEL. TotalEnergies confirmed these details in a statement shared with a Washington-based energy platform.

The accusations triggered a sharp decline in Adani Group’s market value, with shares plummeting by 22% on Thursday, November 21, 2024, wiping $27 billion off the company’s valuation. The market partially recovered during trading on Friday, November 22, 2024.

Despite the turmoil, TotalEnergies clarified that the charges are not directed at AGEL or its affiliated companies, emphasizing its zero-tolerance policy on corruption in accordance with its corporate Code of Conduct.

Both Gautam Adani and his associates have denied the allegations, but the charges remain a significant challenge for the group. U.S. Attorney General Brion Pace stated that Adani and his team bribed officials and misled investors to raise billions through loans and bond sales, estimated at $3 billion. Pace reaffirmed the Department of Justice's commitment to combating corruption and safeguarding market integrity.

TotalEnergies holds a 19.75% stake in AGEL and a 50% share in three of its renewable energy projects. While the French energy giant has distanced itself from the accusations, it has stated that its investments were made in compliance with all legal and ethical standards.

TotalEnergies has frozen any new investments in the Adani Group until the situation is resolved, as the scandal continues to weigh on the group’s market performance and investor confidence.