06/09/2024
Following the recent acquisition of Jomo Kenyatta International Airport in Kenya, Kenya Airports Authority JOMOKENYATTA INTERNATIONAL AIRPORT here are some of the controversies involving the Adani Group:
Political Ties with Indian Government: Accusations of benefitting from close ties with Indian PM Narendra Modi, leading to preferential treatment in contracts and regulatory approvals.
Coal Mining & Environmental Violations: The Carmichael coal mine in Australia faced backlash for damaging the Great Barrier Reef and misleading locals about jobs.
SEZ Land Acquisition Controversy (Mundra SEZ): Allegations of acquiring land at throwaway prices and environmental degradation at Mundra Port.
Overvaluation of Coal Imports: Accused by the Directorate of Revenue Intelligence of inflating coal prices to funnel money into offshore tax havens.
Mumbai Airport Bid Irregularities: Criticism over winning a bid to manage six Indian airports without prior experience.
Corporate Governance Issues: Offshore shell companies linked to stock manipulation. In 2023, Hindenburg Research accused the group of fraud and inflated stock prices.
Environmental Violations in Ports and Power Plants: Destruction of mangroves and flouting pollution norms at its ports and power plants.
Tax Evasion Allegations: Accusations of using offshore companies to evade taxes, with investigations from India's tax authorities.
Manipulation in Renewable Energy Contracts: Allegedly given favorable terms to win bids in India's solar energy sector.
Loans from Indian Public Banks: The group has received large public loans, raising concerns over its debt levels and impact on India’s banking system.
Allegations of Monopoly Practices: Criticized for stifling competition and monopolizing sectors like ports and power distribution.
Labor Practices: Accused of violating labor laws, including unsafe working conditions and non-payment of wages in mining and infrastructure projects.
Questionable Land Deals in India: Acquiring land at below-market rates, sometimes at the cost of local communities, leading to displacement and unrest.
Use of Tax Havens: Links to offshore companies in tax havens, raising questions about financial transparency and tax evasion.
Environmental Violations in Australia: Breaching environmental rules by releasing coal-laden water into the Great Barrier Reef World Heritage Area.
Privatization of Public Assets: Gaining control of public airports and power plants amid accusations of limited competition and transparency.
Lack of Corporate Transparency: Accusations of moving funds between subsidiaries and lacking financial transparency in related-party transactions.
Preferential Treatment in Coal Block Allocations: Alleged favoritism in coal block allocations, benefiting from undervalued coalfields during the Coalgate scandal.
Illegal Export and Under-Invoicing of Diamonds: Allegations of under-invoicing diamond exports to evade taxes in its diamond trading arm.
Defense Sector Controversy: Criticized for fast-tracked approvals and lack of experience after entering India's sensitive defense manufacturing sector.
While Adani Group denies any wrongdoing, these controversies continue to raise questions about its business practices and political influence.
