Adani Group chairman Gautam Adani suffered a setback on Thursday after he was indicted for fraud by US prosecutors. Adani, his nephew Sagar Adani and others were charged for their alleged roles in a USD 265 million scheme to bribe Indian officials to secure power-supply deals.

Later, there were reports that Kenya cancelled two major deals worth USD 2.5 billion with the Adani Group after the US indictment on bribery charges. However, the billionaire-led group has now clarified the reports, saying it had not entered into any binding agreement to operate Kenya's main airport.

On the pact it had signed last month to build and operate key electricity transmission lines in Kenya for 30 years, the group said the project did not fall within the ambit of Sebi's disclosure regulations, thereby not warranting any disclosure on its cancellation.

The group was responding to notices sent by stock exchanges to confirm reports of Kenyan President William Ruto ordering the cancellation of a procurement process that had been expected to award control of the country's main airport after the conglomerate's founder was indicted in the US. The group's flagship firm, Adani Enterprises Ltd, which houses its airport business, in a filing said it had in August this year incorporated a step-down subsidiary in Kenya to upgrade, modernise, and manage airports.

"While the company was in discussion with the relevant authority for the said project, till date neither the company nor its subsidiaries (i) have been awarded any airport project in Kenya, or (ii) entered into any binding or definitive agreement in connection with any airport in Kenya," the firm said. It did not confirm or deny reports of Kenya cancelling the airport deal.

Under the proposed airport deal worth nearly USD 2 billion, the conglomerate was to add a second runway at Jomo Kenyatta International Airport and upgrade the passenger terminal. It was also to operate it on a 30-year lease. Kenya's President also stated that he was cancelling a separate 30-year, USD 736-million public-private partnership that an Adani Group firm signed with the Ministry of Energy and Petroleum last month to construct power transmission lines.

Source : DNA India