French energy giant TotalEnergies SE announced on Monday that it was unaware of the corruption investigation facing the founder and chairman of India’s Adani Group, Gautam Adani, in the US. The company added that it was halting any new investments in the Adani Group until the investigation’s outcome is clarified.
TotalEnergies, one of Adani’s biggest foreign investors, made the announcement after US authorities indicted Adani and two other executives for allegedly paying $265 million in bribes to Indian officials to secure solar power contracts for Adani Green Energy Ltd (AGEL).
In a statement, TotalEnergies clarified that the indictment did not target AGEL or any other related companies. The French firm, which holds a 19.75 per cent stake in AGEL, said it would not make further financial contributions to Adani Group companies until the charges against the individuals were resolved. It also emphasized that its investments were made in full compliance with applicable laws.
"This indictment does not target AGEL itself, nor any AGEL-related companies," the company said. "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."
Despite the corruption allegations, TotalEnergies reiterated its commitment to rejecting corruption in all forms and stated that the investigation did not involve the company directly. The firm has been a key player in Adani's renewable energy ventures, including its stake in AGEL, and holds a 37.4 per cent stake in Adani Total Gas Ltd (ATGL), which provides CNG to vehicles and natural gas to homes.
Adani Group has vehemently denied the allegations, dismissing them as baseless, and has vowed to pursue all possible legal recourse.
Meanwhile, GQG Partners, which had invested significantly in Adani Group after the firm’s stock value plummeted following the Hindenburg report in 2023, issued a separate statement.
The investment management firm, which has $8.1 billion tied to Adani companies, noted that the indictment only involved individuals and did not impact other parts of the conglomerate. GQG expressed continued confidence in Adani Group's future, despite the ongoing legal challenges.
"We continue to believe each individual company is well-positioned for the future," GQG stated. "Our investments in Adani, as of November 21, have had positive returns in aggregate for our portfolios."
The bribery allegations, which focus solely on AGEL, have drawn international attention. However, GQG noted that such investigations often take years to resolve, and in some cases, they result in reduced penalties or fines.
The TotalEnergies announcement adds to the growing concerns surrounding Adani Group, which has been under intense scrutiny since a report by US short-seller Hindenburg accused the company of financial and accounting fraud in early 2023.
The report triggered a significant decline in Adani’s stock value, but the company has since recovered most of the losses.
TotalEnergies first partnered with Adani Group in 2018 for a liquefied natural gas (LNG) venture. It later invested $2.5 billion in Adani’s solar assets in 2020-21, acquiring stakes in AGEL and ATGL.
In February 2023, the French energy giant paused its planned $50 billion hydrogen investment in Adani Group due to concerns raised by the Hindenburg allegations.
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