The Adani Group is back in the spotlight, but not for the reasons its coal billionaire chair, Gautam Adani, would want.

Charged in the US with allegedly orchestrating a $250 million bribery scheme to secure solar energy contracts, Adani’s fall from grace is a damning indictment of unchecked corporate greed. For years, activists and watchdogs have warned that the Adani empire thrives on exploiting regulatory loopholes, environmental destruction, and questionable ethics. Now there are reports that arrest warrants have been issued for both Gautam and Sagar Adani, it’s time for investors to reckon with the moral implications of funding such operations.

The company’s value came under pressure after allegations of “brazen stock manipulation”, “accounting fraud” and “money laundering” were published by the short seller investment firm Hindenburg Research last year.

Financial institutions that pour billions into Adani’s ventures cannot claim ignorance anymore.

According to court documents, some of the defendants referred privately to Gautam Adami with the code names "Numero uno" and "the big man," while Sagar Adani allegedly used his mobile phone to track specifics about the bribes.

These revelations lay bare an alleged pattern of corruption and deception, including concealed bribes and fraudulent schemes presented to investors as legitimate business deals. By continuing to fund the Adani Group, investors risk being complicit in propping up a system that prioritises profit over ethics and sustainability. It’s not just a reputational risk; it’s a question of whether their investments align with their commitments to environmental, social, and governance (ESG) principles.

This latest scandal is a stark reminder that Adani’s track record has long been mired in controversy.

From environmental destruction at the Carmichael coal mine on Wangan and Jagalingou land in Australia to the displacement of Indigenous communities through coal projects in India, the coal company has repeatedly prioritised profit at immense human and environmental cost.

Yet some financial institutions have continued to back Adani’s ventures, turning a blind eye to mounting evidence of harm. Now, with these serious allegations of bribery and fraud, there’s no excuse for inaction. Investors should withdraw their support and send a clear message: corruption and exploitation are not bankable.

The time has come for the financial sector to take a stand.

Investors cannot claim to champion sustainability or ethical governance while funnelling money into a company built on corruption. Defunding Adani isn’t just a moral imperative—it’s a necessary step toward holding corporations accountable and fostering a global economy that prioritises transparency, fairness, and genuine progress.

The question for banks and fund managers is simple: will you stand on the right side of history, or will you continue to bankroll business as usual?

Read more:

https://www.abc.net.au/news/2024-11-21/gautam-adani-indicted-in-new-york/104628238

https://www.theguardian.com/business/2024/nov/20/gautam-adani-charged-alleged-bribes