Kenya Adani Airport Deal Cancelled: India’s Famous Industrialist Faces Another Blow
India’s renowned industrialist Gautam Adani has suffered yet another setback. On November 21, a corruption case was filed against him in a New York court. Following this, the Kenyan government dealt another blow by canceling the Adani Group’s proposed airport expansion and power projects. Adani Group had bid for these projects, with the energy sector project valued at $700 million and the power project at $1.8 billion.
Kenyan President William Ruto announced in parliament that he has directed the Ministry of Transport and Energy and Petroleum to immediately cancel these projects. He stated that the decision was based on critical information provided by investigative agencies from partner countries. Following Ruto’s announcement, members of parliament applauded, and the applause continued for a long time. A video of this moment is now circulating on social media.
“I will not hesitate to make decisions based on evidence and credible information about corruption,” President Ruto told parliament, according to AFP. The Adani Group had partnered with a company that has managed airports in Kenya for 30 years to modernize Nairobi’s main airport, which included agreements to construct additional runways and terminals.
For months, protests in Kenya have targeted the parent company due to its association with the Adani Group. In September, airport employees even staged a strike. Trade unions expressed concerns that the deal would jeopardize jobs and create workplace issues.
What are the charges against Adani in the US?
The U.S. Securities and Exchange Commission (SEC) has separately sued Gautam Adani, his nephew Sagar Adani, and executives of Azure Power in the New York District Court. Five others have also been charged with conspiracy and violations of the Foreign Corrupt Practices Act (FCPA). Four additional individuals in New York face charges of conspiracy to obstruct justice.
According to the SEC, Adani Green Energy raised $750 million (approximately ₹6,300 crore) in the U.S. through bond issuance in September 2021. The regulator claims that this money, sourced from U.S. investors, was used to win power supply contracts in Indian states through bribery and fraud. The SEC views this deception of American investors as highly condemnable.
The indictment also names Azure Power, listed on the New York Stock Exchange, which had won a tender to supply 4,000 MW of solar power. However, bribes allegedly paid to secure the tender benefitted the Adani Group, which later took over a portion of the contract initially awarded to Azure.
