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Mumbai. The Telangana government has turned down a ₹100 crore donation offer from the Adani Group for the Young India Skill University. Chief Minister Revanth Reddy announced this decision during a press conference on Monday, citing concerns about the ongoing controversies surrounding the Adani Group. He stated that accepting the donation could harm both the government’s and his personal image.

Government Sends Letter Declining Donation

In a proactive move, the Telangana government had already communicated its decision to the Adani Group on Sunday. A letter, addressed to Preeti Adani, Chairperson of the Adani Foundation and wife of Gautam Adani, was sent by the state’s Special Chief Secretary, Jayesh Ranjan. The letter requested the group not to transfer the pledged ₹100 crore for the university. Interestingly, the Telangana government has not yet accepted any monetary contributions from private entities for the university, despite receiving offers from various companies.

Adani Group’s Growing Legal Troubles

This rejection comes amid serious allegations of fraud and bribery against Gautam Adani and other executives of the Adani Group. On November 20, during a hearing in New York’s Federal Court, Adani and eight others were accused of being involved in fraudulent activities worth billions of rupees. According to reports by Reuters, the Adani Group is alleged to have offered bribes totaling $265 million (around ₹2,200 crore) to Indian officials to secure solar energy contracts. These allegations primarily involve Adani Green Energy Limited and another firm. An arrest warrant has reportedly been issued against Gautam Adani and his nephew, Sagar Adani, in the United States. The allegations also include misleading American investors and banks to raise funds that were later used as bribes. Since American investors’ money was involved, the case was filed under U.S. law. The Adani Group has dismissed these allegations as baseless and politically motivated.

Political Reactions to Adani Controversy

The allegations against Gautam Adani have sparked political debates in India. Congress leader Rahul Gandhi held a press conference on November 21, accusing Prime Minister Narendra Modi of shielding Adani despite the mounting evidence against him. Rahul claimed that Adani’s alleged ₹2,000 crore scam has gone unaddressed in India due to Modi’s protection. In response, BJP spokesperson Sambit Patra criticized Rahul Gandhi, accusing him of tarnishing the Prime Minister’s image. Patra also pointed out that Rahul and Sonia Gandhi are themselves out on bail in separate cases, implying that they lack the moral authority to comment on corruption issues.

Adani’s Net Worth Drops Drastically

Amid these allegations, Gautam Adani’s financial standing took a major hit. On November 21, Adani’s net worth plummeted by $12.1 billion (around ₹1.02 lakh crore) to $57.7 billion (₹4.87 lakh crore) due to a sharp decline in the Adani Group’s stock prices. Of the ten Adani Group companies, shares of nine registered significant losses. Adani Enterprises witnessed the steepest decline, with shares falling by 23.44%. Adani Green Energy’s stock also dropped by 18.95%.

Adani’s Past Controversies - This isn’t the first time the Adani Group has faced scrutiny.

Hindenburg Research Report (January 2023): The group was accused of money laundering and share manipulation in a report by Hindenburg Research. The allegations emerged just before Adani Enterprises’ ₹20,000 crore follow-on public offer. As a result, the group’s market value dropped by $12 billion (around ₹1 lakh crore) within a day. The company later canceled the public offer. Following an investigation by SEBI and a Supreme Court-appointed panel, Adani Group Chairman Gautam Adani declared that the court’s decision had vindicated the group, emphasizing, “Truth has prevailed. Satyamev Jayate.”

Low-Grade Coal Allegations: In another controversy, a report by the Organized Crime and Corruption Reporting Project alleged that the Adani Group purchased low-grade coal from Indonesia at $28 per tonne in 2014, but declared it as high-grade coal to inflate profits.

Telangana Stands Firm

The Telangana government’s decision to reject Adani Group’s donation is a significant move, reflecting a commitment to maintaining transparency and credibility. By distancing itself from the controversies surrounding the Adani Group, the state government aims to protect its reputation and focus on its developmental goals without any external baggage. This bold stance is likely to draw both praise and criticism, but it underscores the importance of ethical considerations in governance. Meanwhile, the allegations against Adani continue to unfold, keeping the group and its chairman under intense scrutiny both in India and internationally.