Adani Group Faces Allegations of Coal Fraud Amid Market Capitalization Surge

The Adani Group, a prominent conglomerate, is embroiled in controversy following allegations of fraudulent coal practices as reported by the Organized Crime and Corruption Reporting Project (OCCRP) and Financial Times. The reports suggest that the group may have misrepresented the quality and value of coal transactions with the Tamil Nadu Generation and Distribution Company (Tangedco).

The accusations imply that Adani Group procured low-grade coal from Indonesia, presented as higher quality, thereby potentially profiting at the expense of air quality. Documents indicate that a shipment of 3,500 calories per kg coal was sold to Tangedco as 6,000-calorie coal, earning significant profits.

Despite the allegations, the Adani Group vehemently denies any wrongdoing. A spokesperson clarified that the coal underwent rigorous quality checks by various agencies, including customs authorities and Tangedco scientists, refuting claims of supplying substandard coal.

Market reactions to the allegations were seemingly muted, with Adani Group stocks remaining stable. Analysts like Deven Choksey of DRChoksey Finserv noted that the market evaluates situations comprehensively before making judgments, indicating confidence in the group’s fundamental strength.

Over the past year, the Adani Group’s market capitalization has surged by 56.6%, surpassing the Nifty index’s 23.3% gain during the same period.