Adani shares crash amid bribery charges, LIC faces Rs 11,728 crore blow

Shares of Gautam Adani-led conglomerate nosedived by 20 per cent after U.S. prosecutors filed bribery charges against Adani and his associates, alleging a $250 million (Rs 2,000 crore) payoff to Indian officials to secure solar power contracts.  

The repercussions extended to the Life Insurance Corporation of India (LIC), which, as per September 2024 shareholding data, holds stakes in seven Adani companies: Adani Enterprises, Adani Ports, Adani Green Energy, Adani Energy Solutions, Adani Total Gas, ACC, and Ambuja Cement. The insurance giant reported a sharp decline of Rs 11,728 crore in the value of its holdings in these firms.  

The largest hit came from Adani Ports, where LIC’s holdings dropped by Rs 5,009.88 crore, followed by a Rs3,012.91 crore loss in Adani Enterprises. Ambuja Cement saw a devaluation of Rs 1,207.83 crore, while declines in other Adani firms included Rs 807.48 crore in Adani Total Gas, Rs 716.45 crore in Adani Energy Solutions, Rs 592.05 crore in Adani Green Energy, and Rs 381.66 crore in ACC.  

Adani, along with seven co-defendants, including his nephew Sagar Adani, is accused of paying bribes to secure contracts for what would become India’s largest solar power project, projected to generate $2 billion in profits over 20 years.  

Opposition leader Rahul Gandhi intensified his criticism of Prime Minister Narendra Modi, accusing him of shielding Gautam Adani from accountability. Gandhi alleged that Adani, indicted in the U.S. for financial misconduct, enjoys impunity in India due to Modi’s protection.  

“Adani’s influence is not just a financial threat but a hijack of the nation,” Gandhi said, linking the industrialist’s dominance in critical sectors like airports, seaports, and defence industries to funding for the ruling Bharatiya Janata Party (BJP).