Adani Green Denies New Financial Commitment With TotalEnergies

French energy conglomerate TotalEnergies announced on Monday that it would halt further investments in Adani Group companies due to corruption allegations filed by the US SEC

Adani Green Energy Limited (AGEL) on Tuesday refuted reports claiming that French energy giant TotalEnergies had suspended new financial commitments to the company following allegations from the US Securities and Exchange Commission (SEC). AGEL said in a statement to the exchanges that media reports and related announcements would not impact its operations or growth plans.

“There is no new financial commitment under discussion with TotalEnergies. Hence, the press release will not have any material impact on the company’s operations or its growth plan. Accordingly, there is no material impact of the media report and the press release on the company at this stage,” AGEL said in the statement.

On Monday, French energy conglomerate TotalEnergies announced it would halt further investments in Adani Group companies due to corruption allegations filed by the US SEC. The allegations, submitted in a New York court, accuse Adani Group founder Gautam Adani and seven others of bribery related to AGEL projects.

The French firm stated that it became aware of the allegations through public announcements made by the US court last week, according to a report by Business Standard. “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,” TotalEnergies said.

TotalEnergies holds a 19.75 per cent stake in AGEL and a 50 per cent stake in three joint ventures with the group, with these commitments valued at $3.2 billion as of September 2024. The company also indicated that it would take steps to protect its interests in AGEL.

Meanwhile, this is not the first time TotalEnergies has paused its investment in the Adani Group. In February 2023, the energy giant postponed plans to acquire a 25 per cent stake in Adani New Industries Limited (ANIL) while awaiting the outcome of investigations into allegations made by US short-seller Hindenburg Research.