French conglomerate Total Energies has suspended its financial contributions to the Adani Group of Companies, whose directors are facing corruption charges in the US.

In a statement on Monday, November 25, 2024, Total, which holds a 19.75 per cent stake in Adani Green Energy Limited (AGEL), says it will not make further financial contributions to the group until the company is cleared of the charges in US.

“TotalEnergies has learnt through public announcements made by the US authorities of the indictment of certain individual Adani group executives in relation to an alleged corruption scheme linked to the business of Adani Green Energy Limited (AGEL). This indictment does not target AGEL itself, nor any AGEL related companies,” Total stated.

“In accordance with its code of conduct, TotalEnergies rejects corruption in any form. TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as minority (19.75%) shareholder of AGEL and as a joint-venture partner (50%) in project companies with AGEL.”

In India, Total Energies also has acquired a 50 per cent stake in three joint ventures operating renewable assets (AGEL23 in 2020, AREL9 in 2023, AREL64 in 2024)

“Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies,” Total added.

“TotalEnergies recalls that its investments in Adani’s entities were undertaken in full compliance with applicable laws, and with TotalEnergies’ own internal governance processes pursuant to due diligence and representations made by the sellers. In particular, TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme.”

Adani indicted

According to the US Attorney’s Office in the Eastern District of New York, Adani proprietor Gautam Adani will be charged with conspiracies to commit securities and wire fraud.

Gautam Adani, who is one of Indian wealthiest individuals is expected to be charged alongside Sagar R. Adani and Vneet S. Jaain, executives of an Indian renewable-energy company.

In a statement, the US Department of Justice also listed Ranjit Gupta and Rupesh Agarwal, former executives of a renewable-energy company, Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra, former employees of a Canadian institutional investor.

“These offences were allegedly committed by senior executives and directors to obtain and finance massive state energy supply contracts through corruption and fraud at the expense of U.S. investors. The Criminal Division will continue to aggressively prosecute corrupt, deceptive, and obstructive conduct that violates U.S. law, no matter where in the world it occurs,” FBI Assistant Director in Charge Dennehy stated.

“Gautam Adani and seven other business executives allegedly bribed the Indian government to finance lucrative contracts designed to benefit their businesses. Adani and other defendants also defrauded investors by raising capital on the basis of false statements about bribery and corruption, while still other defendants allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation.”

While absolving itself from bribery allegations, the Indian firm which specialises in ports, airports and renewable energy, announced plans to lodge a legal battle in a bid to clear its name in the US.

“The allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied,” the statement shared by the company spokesperson read in part.