Frontpage Insights | New Delhi: The trouble of businessman Gautam Adani, who is surrounded in US bribery scandal, is increasing. On Tuesday, the global rating agency Moody's has made the outlook of 7 companies of the Adani group negative. They include Adani Green Energy, Ports, Transmission, Electricity Mumbai Ltd., International Container Terminal and Ports and Special Economic Zone Ltd. etc. are involved. Moody's has taken this decision due to the Adani Group's legal problems and the impact it is having on its operations.
While, Fitch Ratings has also downgraded the group's 4 companies Adani Ports, Energy, Electricity Mumbai and Special Economic Zone Ltd. to negative. Fitch has taken this decision due to increasing corporate governance risk as well as potential financial crisis. This may make it difficult for Adani Group to raise capital in future.
How much loss so far: Market cap of 10 Adani group companies down by Rs 2.77 lakh crore 1. Chandrababu Naidu government of Andhra has initiated review of electricity supply deal with Adani group. Gautam Adani and his associates have been accused by an American federal court of allegedly paying Rs 2,200 crore in bribes to Indian officials to secure projects linked to the supply of solar energy in Odisha, Tamil Nadu, Chhattisgarh, Andhra Pradesh and Jammu-Kashmir between 2021-22. A major portion of the bribe was given to Andhra electricity distribution companies to purchase electricity. According to Andhra Finance Minister Payyavula Keshav, all the files of the previous government are being examined. 2. The market cap of the 10 listed companies of the group has decreased by Rs.2.77 lakh crore in the last 6 days after the filing of the suit in the American court. Adani Green has incurred a loss of Rs.78,000 crore. 3. French company Total Energy has halted new investment in the group. He has 19.75% stake in Adani Green Energy Ltd. In February 2023, Total Energy shelved plans to acquire a 25% stake in Adani New Industrial Ltd following the Hindenburg Report. 4. The US International Development Finance Corporation is reviewing the impact of the challenge. It could affect a $550 million loan for a port development project in Sri Lanka. The project is partially owned by the Adani Group. 5. The Sri Lankan government is also investigating the allegation. Several projects of Adani are underway in Sri Lanka.
6. Kenyan government has already canceled 2 deals with Adani. 7. Bangladesh government has formed a committee to review the power contract signed with Adani Group during the time of former PM Sheikh Hasina.
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