Gautam Adani: A list of disputes

Reuters Updated - November 21, 2024 at 06:24 PM.

Billionaire Gautam Adani and the group he chairs is not new to controversy and disputes

Adani Group Chairman Gautam Adani

Indian billionaire Gautam Adani and his ports-to-power conglomerate Adani Group were hit by a new controversy on Thursday after US prosecutors charged him in an alleged bribery and fraud scheme, accusations the group denied.

Below are some other major disputes involving Adani and the group he chairs.

HINDENBURG VS ADANI

US short-seller Hindenburg Research alleged in January 2023 that Adani improperly used offshore tax havens and that certain offshore funds and shell companies tied to Adani Group "surreptitiously" owned stock in Adani's listed firms. The group described the claims as baseless.

In August, Hindenburg alleged that the chief of the Indian markets regulator, who was investigating the group after the Hindenburg report, previously held investments in offshore funds also used by the Adani Group.

The regulator said investigations into the allegations against Adani Group were completed in almost all matters, and that the chief had made relevant disclosures.

DHARAVI REDEVELOPMENT PROJECT

Adani's $619 million deal to redevelop Mumbai's Dharavi slum, Asia's largest, into a modern city hub has faced opposition from residents over his capacity to deliver. It also faced allegations that Prime Minister Narendra Modi's allies treated Adani favourably, accusations the conglomerate denied.

The group struggled to secure land to rehouse the roughly 700,000 residents who would be displaced during the redevelopment.

CARMICHAEL COAL MINE

The Carmichael coal mine, owned by Australia-based Adani Mining Pty Ltd and located in Queensland, battled a seven-year campaign by climate activists before shipping its first cargo in December 2021.

Green groups worried about emissions and damage to the Great Barrier Reef opposed the project, and sustained protests scared off lenders, insurers and engineering firms.

The development of the mine was shrunk to 10 million metric tons a year from the previously-envisioned 60 million tons a year.

TROUBLES IN KENYA

Kenya's high court suspended two Adani Group projects this year following criticism from stakeholders.

On September 10, the court temporarily blocked a proposed deal to lease the country's main airport for 30 years in exchange for expanding it, after allegations that the lease was unaffordable, threatened jobs, was a fiscal risk and did not offer taxpayers value for money.

A month later, the court suspended another $736 million deal between state-owned Kenya Electrical Transmission Company (KETRACO) and Adani Energy Solutions after an advocacy group argued it was "a constitutional sham" and "tainted with secrecy".

MYANMAR PORT SALE

In October 2021, Adani Ports abandoned plans to build a container terminal in Myanmar after rights groups reported the company would be leasing the land for the project from a military-controlled firm under US sanctions.

The company sold the project in May 2024 for $30 million, significantly lower than the $127 million it invested in it.

BANGLADESH POWER

Adani Power reduced electricity supply to neighboring Bangladesh this month after failing to recover more than $800 million in dues amid a political crisis in the country.

The power deal is being studied by a panel set up by Bangladesh's caretaker government which is investigating if contracts signed by its predecessor protected the nation's interests. The power pact has been criticised by Bangladesh's opposition groups who say it is overpriced.

VIZHINJAM PORT PROTESTS

Construction of the $900-million port in southern India was halted for about four months in 2022 as fishing workers protested, blaming the project for coastal erosion and affecting their livelihoods.

The Adani Group said the port complied with all laws and cited studies that showed it is not linked to shoreline erosion. The construction resumed in December 2022.

Published on November 21, 2024 11:31

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