MUMBAI: French oil major TotalEnergies has announced suspension of additional investments in Adani Group companies pending the resolution of US bribery allegations against the Indian conglomerate’s founder. The Paris-based company, which holds strategic stakes in Adani Group’s renewable energy and gas distribution businesses, said it was not made aware of the US investigation into corruption related to the Indian group’s solar power business.
“TotalEnergies rejects corruption in any form,” the company said.”This indictment does not target Adani Green Energy (AGEL) itself, nor any AGEL-related companies.”
TotalEnergies said it learned through public announcements by US about the indictment against Adani Group’s founder-chairman Gautam Adani and others.
Adani Group founder-chairman Gautam Adani, his nephew and Adani Green Energy’s executive director Sagar Adani, and others are charged with executing a $265m bribery scheme linked to the business of Adani Green Energy.
TotalEnergies acquired a 19.7% stake in Adani Green Energy in Jan 2021. Subsequently, in Sept, it established an equal partnership venture with the Indian conglomerate to acquire three operational renewable assets with 1,150MW capacity, investing $444 million. Additionally, it holds 37.4% in Adani Total Gas, which sells CNG to automobiles and natural gas to households.
“TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as a minority shareholder of AGEL and as a joint-venture partner in project companies with AGEL,” the French oil major added. The French major further said it made the investments in Adani Group companies “in full compliance with applicable laws” and in line with its own internal governance processes pursuant to due diligence and representations made by the sellers.
In Feb 2023, TotalEnergies had suspended its planned participation in Adani Group’s $50bn green hydrogen initiative following Hindenburg Research’s allegations of accounting irregularities and stock market manipulation. The French company had planned to acquire 25% in Adani New Industries in June 2022.
