French oil and gas company TotalEnergies on Monday said that it will not make any new financial contributions as part of its investments in the Adani Group in view of the indictment of Gautam Adani by a United States court in a $265 million bribery and fraud case.
“TotalEnergies rejects corruption in any form,” the company said in a statement. “TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme.”
The company added: “Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies.”
The statement came just days after a New York court on November 20 announced the indictment of Gautam Adani in a multibillion-dollar bribery and fraud scheme related to the Adani Group’s solar projects in India.
The indictment has triggered an uproar in India.
A judge also issued arrest warrants for the industrialist and his nephew, Sagar Adani, in connection with the allegations.
Gautam Adani and seven others, including Sagar Adani, agreed to pay over $265 million, or nearly Rs 2,236 crore, in bribes to Indian government officials between 2020 and 2024 to obtain contracts expected to yield a profit of $2 billion, or nearly Rs 16,880 crore, over 20 years, alleged a statement by the United States Attorney’s office for the Eastern District.
The United States Securities and Exchange Commission has also summoned Gautam Adani and Sagar Adani in connection with the allegations.
The Adani Group has denied the accusations, calling them “baseless”.
TotalEnergies is one of the biggest foreign investors in the Adani Group. Its ties to the Adani Group date back to 2018 when the two companies partnered to develop a liquefied natural gas business.
In January 2021, TotalEnergies purchased a 19.75% stake in Adani Green Energy, Reuters reported. The oil and gas company also owns a 37.4% stake in Adani Total Gas Limited, as well as a 50% stake in three renewable joint ventures with Adani Green Energy.
“TotalEnergies recalls that its investments in Adani’s entities were undertaken in full compliance with applicable laws, and with TotalEnergies’ own internal governance processes pursuant to due diligence and representations made by the sellers,” the statement on Monday said.
The oil and gas company added that it would take “all relevant actions to protect its interests as minority [19.75%] shareholder of AGEL [Adani Green Energy] and as a joint-venture partner [50%] in project companies with AGEL”.
The shares of Adani Green Energy plunged 11.3% after TotalEnergies’ announcement on Monday, Reuters reported.
Also read: How Adani Group misled Indian stock exchanges on the bribery investigation against it
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