TotalEnergies will not make fresh investments in Adani Group

French energy giant TotalEnergies says it 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 petroleum major says U.S. authorities’ indictment of certain individual Adani group executives in relation to an alleged corruption scheme linked to the business of Adani Green Energy Ltd (AGEL) does not target AGEL itself, nor any AGEL-related companies.

TotalEnergies says it “rejects corruption in any form.”

TotalEnergies, which is not targeted nor involved in the facts described by such indictment, says it will take all relevant actions to protect its interests as a minority (19.75%) shareholder of Adani Green Energy and as a joint-venture partner (50%) in project companies with AGEL.

“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,” the company says.

In January 2021 TotalEnergies acquired a minority interest in the listed company Adani Green Energy of which it now owns 19.75%. As part of its strategy to enhance its development in renewables in India through direct access to a portfolio of assets, TotalEnergies also has acquired 50% stake in 3 joint ventures operating renewable assets.

This statement comes two days after Adani Group said it will respond to bribery allegations levelled by the U.S. government after reviewing the charges in detail and seeking counsel approval as the matter is "sub-judice."

Jugeshinder Robbie Singh, the chief financial officer of Adani Group, says the allegations specifically relate to one contract of Adani Green Energy which is roughly 10% of the overall business of Adani Green. "There is a lot more precise and comprehensive detail of this which we will elaborate in an appropriate forum," Singh said in a post on X.

Adani Group chairman Gautam Adani, his nephew Sagar Adani and Vneet S. Jaain, managing director and CEO of Adani Green Energy, along with five other individuals were indicted in a federal court in Brooklyn, New York for allegedly bribing Indian government officials with over $250 million to secure lucrative solar energy contracts worth billions of dollars. According to the indictment filed in the court, Federal Bureau of Investigation (FBI) special agents approached Sagar in the United States on March 17, 2023, and took custody of electronic devices in his possession. At the same time, FBI special agents provided Sagar with a copy of the search warrant and served him with a grand jury subpoena.

The search warrant identified individuals and entities under investigation by the United States government, specifically: violations of the FCPA (Foreign Corrupt Practices Act), securities fraud, wire fraud and related conspiracies involving Sagar, Gautam and Vneet, as well as Adani Green Energy. On March 18, 2023, Gautam emailed himself photographs of each page of the search warrant executed and grand jury subpoena served on Sagar, the indictment says.