Gautam Adani is facing charges of bribing Indian government officials to secure huge contracts at the expense of US investors. The Adani Group took a serious hit after the report came out, but how did it all happen, and what are its implications?
A federal indictment is a formal accusation, highlighting the details like the legal proceedings and evidence related to the case. A grand jury in the US reviewed these documents provided by the prosecution and concluded that there was enough evidence to begin legal proceedings.
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It is important to note that it is not a conviction and Adani will have the opportunity to defend himself against these allegations. However, it can have major impacts on the accused like issuing arrest warrants, travel bans, and freezing of assets.
For such a big company like the Adani group, it will also damage their public reputation. This was immediately seen in the market as their stock price dropped 24% in a day.
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While the case is currently under US court, the proceedings could shift to India in the future. Both the countries will have to agree and India needs to have the provision for accusing Adani of the same charges if this happens.
Adani Group has denied all the charges and claims they are transparent in all its operations. The investors on the other hand remain skeptical and a huge damage is already done.
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