Factbox: The many disputes of Indian billionaire Gautam Adani

Adani Total Gas

21/11/2024 11:00

By Haripriya Suresh and Ananta Agarwal
       Nov 21 (Reuters) - Indian billionaire Gautam Adani and
his ports-to-power conglomerate Adani Group  ADEL.NS  were hit
by a new controversy on Thursday after U.S. prosecutors charged
him in an alleged bribery and fraud scheme, accusations the
group denied.
    Below are some other major disputes involving Adani and the
group he chairs.
    
    HINDENBURG VS ADANI
    U.S. short-seller Hindenburg Research alleged in January
2023 that Adani improperly used offshore tax havens and that
certain offshore funds and shell companies tied to Adani Group
"surreptitiously" owned stock in Adani's listed firms. The group
described the claims as baseless.
    In August, Hindenburg alleged that the chief of the Indian
markets regulator, who was investigating the group after the
Hindenburg report, previously held investments in offshore funds
also used by the Adani Group.
    The regulator said investigations into the allegations
against Adani Group were completed in almost all matters, and
that the chief had made relevant disclosures. 
    
    DHARAVI REDEVELOPMENT PROJECT
    Adani's $619 million deal to redevelop Mumbai's Dharavi
slum, Asia's largest, into a modern city hub has faced
opposition from residents over his capacity to deliver. It also
faced allegations that Prime Minister Narendra Modi's allies
treated Adani favourably, accusations the conglomerate denied.
    The group struggled to secure land to rehouse the roughly
700,000 residents who would be displaced during the
redevelopment.
    
    CARMICHAEL COAL MINE
    The Carmichael coal mine, owned by Australia-based Adani
Mining Pty Ltd and located in Queensland, battled a seven-year
campaign by climate activists before shipping its first cargo in
December 2021.
    Green groups worried about emissions and damage to the Great
Barrier Reef opposed the project, and sustained protests scared
off lenders, insurers and engineering firms.
    The development of the mine was shrunk to 10 million metric
tons a year from the previously-envisioned 60 million tons a
year. 
             
    TROUBLES IN KENYA
    Kenya's high court suspended two Adani Group projects this
year following criticism from stakeholders.
    On Sept. 10, the court temporarily blocked a proposed deal
to lease the country's main airport for 30 years in exchange for
expanding it, after allegations that the lease was unaffordable,
threatened jobs, was a fiscal risk and did not offer taxpayers
value for money. 
    A month later, the court suspended another $736 million deal
between state-owned Kenya Electrical Transmission Company
(KETRACO) and Adani Energy Solutions after an advocacy group
argued it was "a constitutional sham" and "tainted with
secrecy". 
       
    MYANMAR PORT SALE
    In October 2021, Adani Ports  APSE.NS  abandoned plans to
build a container terminal in Myanmar after rights groups
reported the company would be leasing the land for the project
from a military-controlled firm under U.S. sanctions.
    The company sold the project in May 2024 for $30 million,
significantly lower than the $127 million it invested in it.
    
    BANGLADESH POWER
    Adani Power reduced electricity supply to neighboring
Bangladesh this month after failing to recover more than $800
million in dues amid a political crisis in the country.
    The power deal is being studied by a panel set up by
Bangladesh's caretaker government which is investigating if
contracts signed by its predecessor protected the nation's
interests. The power pact has been criticised by Bangladesh's
opposition groups who say it is overpriced.    
    
    VIZHINJAM PORT PROTESTS
    Construction of the $900-million port in southern India was
halted for about four months in 2022 as fishing workers
protested, blaming the project for coastal erosion and affecting
their livelihoods.
    The Adani Group said the port complied with all laws and
cited studies that showed it is not linked to shoreline erosion.
The construction resumed in December 2022. 

 (Reporting by Haripriya Suresh and Ananta Agarwal; Editing by
YP Rajesh and Mark Potter)
 ((Haripriya.Suresh@thomsonreuters.com;))