BIG blow to Gautam Adani, Total Energies suspends new investments in Adani Group after...

Total Energies on Monday responded to recent US indictments of certain Adani Group executives, stating that it will pause further financial contributions until the allegations are resolved. The company also clarified that its investments in Adani Green Energy Limited (AGEL) were made in compliance with laws and internal governance processes.

In its statement, Total Energies emphasized that it is not targeted by the indictment nor involved in the alleged actions. Total Energies holds a 19.75 percent minority stake in AGEL and a 50 percent joint venture stake in some of its projects. It also stated that it would take necessary actions to protect its interests as a shareholder and joint venture partner.

"Total Energies will not make any new financial contribution as part of its investments in the Adani group of companies until the accusations against the Adani group individuals and their consequences have been clarified," the statement read.

The French energy giant further added, "Total Energies recalls that its investments in Adani's entities were undertaken in full compliance with applicable laws and with Total Energies' own internal governance processes pursuant to due diligence and representations made by the sellers. In particular, Total Energies was not made aware of the existence of an investigation into the alleged corruption scheme."

Total Energies acquired a minority interest in AGEL in January 2021, now owning 19.75% of the company. As part of its renewable energy strategy in India, it also owns a 50% stake in three joint ventures operating renewable energy projects with AGEL.

Last week, a five-count criminal indictment was unsealed in the United States District Court for the Eastern District of New York, charging prominent Indian executives, including Chairman of the Adani Group, Gautam Adani, by linking them to an alleged bribery and fraud scheme.

In response, Adani Group strongly denied the bribery allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of the Adani Green as "baseless."

An Adani Group spokesperson in an official statement had said all legal recourse will be taken.

"The US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green are baseless and denied," the statement had read.

The Adani Group also reaffirmed its dedication to high standards of governance, compliance, and transparency across its operations.

(Except for the headline, this story has not been edited by DNA staff and is published from ANI)