French energy giant TotalEnergies has halted investments into the Adani Group after the Indian business was hit with allegations of corruption.
Criminal charges have been filed against chairman Gautam Adani and seven other people over allegations they agreed to pay around $265m in bribes to Indian government officials, the US Department of Justice announced.
The Adani Group has denied the allegations, describing them as “baseless”.
TotalEnergies, which is neither targeted nor involved in the allegations described in the indictment, said it rejected corruption “in all its forms” and had not been aware of the investigation.
In January 2021, TotalEnergies acquired a minority stake in Adani Green Energy Limited (AGEL), of which it now owns 19.75%.
As part of its strategy to strengthen its development in renewable energy in India through direct access to a portfolio of assets, TotalEnergies also acquired a 50% stake in three joint ventures with AGEL operating renewable assets.
The company said it would take all necessary measures to protect its interests as a minority shareholder of AGEL and as a partner in the three joint ventures.
“Until the accusations against the Adani Group executives and their consequences are clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani Group of Companies,” the statement from TotalEnergies said.
TotalEnergies said its investments in Adani’s entities were made in compliance with applicable laws and with its own internal governance processes. The company said it was not informed of the existence of an investigation into the alleged acts of corruption.
An Adani Group spokesman said: “As stated by the US Department of Justice itself, ‘the charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty.’ All possible legal recourse will be sought.
“The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance, transparency and regulatory compliance across all jurisdictions of its operations.
“We assure our stakeholders, partners and employees that we are a law-abiding organisation, fully compliant with all laws.”
The indictment does not target AGEL itself, nor any company linked to AGEL.
- Pictured – an Adani wind farm.