Navigating through a tempest

The allegations against Gautam Adani, one of India's most influential businessmen, have sparked a storm that could have wide-ranging consequences for India's economy and politics.

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Accused by US prosecutors of orchestrating a USD 250 million bribery scheme to secure contracts yielding USD 2 billion in profits over 20 years, Adani and his conglomerate are facing their gravest challenge yet. The Adani Group has categorically denied these charges, terming them to be baseless. However, the damage has already begun to unfold. The market's reaction to the indictment has been swift and consequential. Stocks of Adani Group companies are on a steep decline. A total of USD 34 billion in market value was lost in a single day, with the decline continuing on the following days. The group had to shelve the plans to raise USD 600 million through dollar bonds—the same day when the charges were made. The adversity for the group, obviously, didn't stop there. Kenya terminated a multimillion-dollar airport expansion deal. Other fallouts of the crisis may be in the offing.