A file photo of Adani, the chairman and founder of the Adani Group, in Boston, in 2022. - 2025 The New York Times Company
HOURS after US officials indicted Gautam Adani, one of India’s most prominent business figures, on fraud and conspiracy charges, global repercussions began to ripple across Adani’s vast business empire.
Kenya’s president quickly distanced himself from lucrative infrastructure deals with Adani’s companies to modernise Nairobi’s international airport and the national electricity grid.
Days later, European energy giant TotalEnergies announced it would halt investments in Adani projects, while Bangladesh and Sri Lanka began re-evaluating their partnerships with the Indian conglomerate.
For over a decade, the Adani Group has symbolised India’s global development ambitions, building ports, power plants, mines, airports and infrastructure across continents.
Its meteoric rise made Adani one of the world’s richest individuals, closely aligned with Indian Prime Minister Narendra Modi’s vision for global economic influence.
However, that empire now faces its greatest threat.
On Nov 20, federal prosecutors in New York accused Adani and several close associates of conspiring to bribe Indian officials with US$265mil to secure solar project contracts, while misleading investors about the scheme.
Adani Group dismissed the charges as “baseless” and vowed to fight them.
The fallout has been swift and severe. Adani’s relations with international partners are under mounting strain, while domestic and global scrutiny intensifies.
Kenya’s reversal
Kenyan President William Ruto’s government had been under pressure over controversial Adani-backed projects worth US$2.5bil to improve the country’s electricity grid and Nairobi’s main airport.
Critics accused the deals of corruption and wastefulness.
The indictment gave Ruto an opening to reverse course.
“Based on new information provided by our investigative agencies and partner nations,” Ruto declared during his annual state of the nation address, “we will immediately onboard alternative partners.”
Adani Group downplayed the setback, asserting that no binding agreement existed for the airport project.
Nevertheless, the reversal underscored growing international unease.
Backlash grows
The upheaval in Kenya was just the beginning.
TotalEnergies, a major stakeholder in Adani Green Energy, paused new investments.
GQG Partners, a significant US investor, lost 13% of its value overnight after being downgraded by analysts.
Sri Lanka, where Adani is redeveloping the Port of Colombo and building wind power plants, also reassessed its projects.
An American foreign development agency, which had pledged US$500mil to support the Colombo port, said it had yet to disburse funds pending further due diligence.
Adani responded by pledging to proceed without US funding, financing the project independently.
Meanwhile, in Bangladesh, disputes over electricity rates from Adani-operated plants have escalated.
The country’s interim government threatened to renegotiate or even cancel contracts unless Adani reduces its rates.
“The US indictment has no bearing on our review,” Bangladesh’s energy minister told Reuters on Dec 1.
Modi’s silence, political tensions
In India, the scandal has exacerbated domestic political tensions. Prime Minister Narendra Modi, a long-time ally of Adani since their early days in Gujarat, has remained conspicuously silent.
However, Modi’s ruling Bharatiya Janata Party (BJP) lashed out, framing the US charges as an attack on India itself.
Party spokesmen accused the US government and its “deep state” of conspiring with Indian opposition leaders to destabilise the country.
The US Embassy in New Delhi called the allegations “disappointing”, but the episode revealed how deeply intertwined the BJP’s agenda is with Adani’s fortunes.
Bhaskar Chakravorti, dean of global business at Tufts University’s Fletcher School, highlighted Adani’s role in bolstering Modi’s global ambitions.
“Adani has provided a lot of soft support to Modi’s government,” he said.
Adani’s success in securing high-profile projects has made India a key player in international infrastructure development.
Domestic scrutiny and unrest
Back home, opposition politicians have seized on the scandal.
Calls for an independent inquiry have paralysed parliament for weeks, as opposition leaders equate Adani’s troubles with Modi’s government.
State governments controlled by opposition parties are now threatening to review or cancel major Adani contracts.
Analysts warn that foreign funding for Adani’s ventures could dry up as international confidence wanes.
Adani’s defence
Despite mounting challenges, Adani remains defiant.
Appearing at an awards event on Nov 30, he struck a bullish tone, “Every attack makes us stronger. Every obstacle becomes a steppingstone for a more resilient Adani Group.”
However, his conglomerate’s struggles are far from over.
The group’s reliance on international partners, such as TotalEnergies, and its ability to raise funds are under scrutiny.
Analysts have cautioned that the indictment could stifle Adani’s ability to secure new investments abroad.
A global web unravels
Under Modi’s leadership, Adani Group expanded its operations across Africa, the Middle East and South-East Asia, pushing into markets such as Indonesia, Vietnam, Kazakhstan and Tanzania.
In Israel, Adani’s consortium bought the Haifa port for US$1.18bil, with Israeli officials reaffirming their confidence in Adani despite the US charges.
However, in Kenya, political analysts argue that Ruto’s decision to drop Adani projects has left the country in limbo.
Nairobi’s airport still lacks a second runway and a judge has demanded evidence proving the cancellation of agreements with Adani.
Abraham Rugo, executive director of Kenya’s Bajeti Hub, called for greater transparency in future infrastructure agreements.
“The bottom line is there must be assurances of safeguarding public interest,” he said.
A reckoning for Adani
Adani’s global reputation, once synonymous with India’s economic rise, now hangs in the balance.
As more countries reassess their ties with the conglomerate, questions remain about how deeply the fallout will impact India’s ambitions and Adani’s empire.
For now, Adani’s resilience will be tested like never before. — ©2025 The New York Times Company
