New Delhi: Adani Group reported a staggering loss of nearly $55 billion in market value following fraud allegations made by US prosecutors last week against its founder, Gautam Adani, and other company officials.

On November 20, a US indictment accused the billionaire and several of his subordinates of intentionally misleading international investors as part of a bribery scheme. The indictment claimed the group had orchestrated a plan to bribe Indian government officials to secure profitable contracts.

The company, which strongly denies the allegations, revealed in a statement on Wednesday that its market capitalisation across its 11 listed companies had dropped by almost $55 billion since the US Department of Justice announcement.

Gautam Adani, 62, is accused of participating in a $250 million bribery scheme aimed at obtaining lucrative government contracts. Despite these charges, the company maintained its innocence, calling the accusations "baseless."

The fraud allegations led to a significant sell-off of Adani Group stocks in Mumbai last week, causing several trading halts. While stocks of Adani Enterprises rose by 1.8 percent on Wednesday, the company's market capitalisation has plummeted by more than 20 percent since the indictment.

The group emphasized that the charges were limited to securities fraud, wire fraud conspiracy, and securities fraud, denying any involvement in bribery or corruption. They also clarified that neither Gautam Adani nor his nephew, Sagar Adani, had been charged with bribery.

The scandal has caused widespread repercussions for the conglomerate, including cancellations of international projects, financial market instability, and increased scrutiny from investors, strategic partners, and the public. In Kenya, President William Ruto confirmed that the Adani Group would no longer be involved in the expansion of the country’s electricity grid and its main airport. The group had planned to invest $1.85 billion in Jomo Kenyatta airport and $736 million in Kenya Electricity Transmission Company (KETRACO).

In Sri Lanka, authorities have launched an investigation into Adani's local investments, including a $442 million wind power project and a deep-sea port terminal in Colombo valued at over $700 million.

Despite previous allegations of corporate fraud, Adani Group has managed to weather storms, including a $150 billion market value loss in 2023, following a report by short-seller Hindenburg Research, which accused the group of “brazen” fraud. Adani denied those allegations and labelled the report as a deliberate attempt to harm its image.

The rapid expansion of Adani’s business empire, spanning sectors such as coal, airports, cement, and media, has raised concerns over the conglomerate's financial health. In 2022, Fitch subsidiary CreditSights warned that the company was “deeply over-leveraged.”