Experts cynical of Adani outcome under Trump

The stock market reacted quickly to the SEC's allegations of bribery and fraud against Adani Green and Azure Power - but this could be swept under the rug in a Trump-controlled America.

Gautam Adani and Sagar Adani from Adani Green Energy Ltd, and Cyril Cabanes of Azure Power Global Ltd, allegedly raised over $175 million, capitalising on a multi-billion-dollar solar energy project awarded by the Indian government.

"This is a major historic event," commented Tim Buckley, founder and director of Climate Energy Finance. "The Hindenburg research accusations of two years ago labelled this 'the single biggest corporate fraud in world history'. I think that is right."

The stock market reacted to the allegations with Indian Adani listed stocks down 12-22%, and more than $20 billion of paper shareholder wealth was erased from the collective Adani group on the back of the announcement.

GQG Partners, which invests approximately 10% of clients' assets in issuers related to Adani Group, responded to the allegations stating it will monitor the proceedings.

It is critical for the credibility of the financial markets and the SEC, and for India's ongoing development, that these accusations are tested in a credible court, Buckley said, "Having said that, I'm not going to hold my breath.

"We know President Trump is likely to put his own self-interest first, and given America and India are key strategic allies, Trump is highly likely to get into power and then just sweep to this court case under the table, like happened in India two years ago.

"At the end of the day, there's one rule for billionaires another for the rest of us, and unfortunately, that cynical view has played out already in India. It's only likely to play out under a Trump controlled America."

SEC Division of Enforcement acting director Sanjay Wadhwa stated: "As alleged, Gautam and Sagar Adani induced US investors to buy Adani Green bonds through an offering process that misrepresented not only that Adani Green had a robust anti-bribery compliance program but also that the company's senior management had not and would not pay or promise to pay bribes, and Cyril Cabanes participated in the underlying bribery scheme while serving as director of a U.S. public company.

"We will continue to vigorously pursue and hold individuals, including senior corporate officers and directors, accountable when they violate our securities laws."

Adani Group said the allegations were "baseless".