TotalEnergies Hits Brakes on Adani Investments Amid Bribery Allegations – What’s Next for the Indian Giant?

French energy giant TotalEnergies has suspended further investments in the Adani Group following bribery allegations against Gautam Adani and key associates. This marks a significant setback for the Indian conglomerate, which has been facing mounting legal and financial scrutiny.

TotalEnergies’ Firm Stance Against Corruption

In a press statement, TotalEnergies reaffirmed its commitment to ethical business practices, citing its internal governance policies and zero-tolerance for corruption.

“TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as a minority (19.75 per cent) shareholder of Adani Green Energy Limited (AGEL) and as a joint-venture partner (50 per cent) in project companies with AGEL,” the company announced.

The decision is tied to allegations brought by U.S. prosecutors in mid-November, accusing Gautam Adani and his nephew of orchestrating a $265 million bribery scheme to secure energy contracts. TotalEnergies clarified that while its prior investments complied with applicable laws and rigorous due diligence processes, it would freeze new financial contributions until the accusations are resolved.

Adani Group Pushes Back

The Adani Group has strongly denied the allegations, calling them baseless. A company spokesperson emphasized that the accusations, including those by the U.S. Securities and Exchange Commission (SEC) in a related civil case, lack merit and promised vigorous legal challenges.

“The allegations made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against directors of Adani Green are baseless and denied,” the group stated.

Kenya’s Response to Adani Links

In a related development, Kenyan President William Ruto has taken decisive action to sever the government’s engagements with the Adani Group. During a State of the Nation address, Ruto directed the Ministries of Transport and Energy to cancel deals with the company, citing credible evidence of corruption.

“In the face of undisputed evidence or credible information on corruption, I will not hesitate to take action,” Ruto declared.

These directives put an end to the Adani Group’s ambitions to control key energy and aviation infrastructure in Kenya, reinforcing Ruto’s commitment to tackling graft in public administration.

Ripple Effects on Adani’s Global Ambitions

TotalEnergies’ decision to halt new investments underscores the increasing challenges Adani Group faces internationally. While Adani’s ventures in renewable energy and infrastructure have attracted significant foreign investments, the ongoing controversies threaten to damage the group’s reputation and financial stability.

With major players like TotalEnergies taking a step back, analysts predict a ripple effect on the conglomerate’s future partnerships. The suspension of deals in Kenya further complicates the Adani Group’s standing as it struggles to mitigate the fallout from these allegations.

As the legal battles unfold, all eyes remain on how Adani Group will navigate these turbulent waters and whether it can restore confidence among investors and international partners.