Adani Group Stocks Surge as US Congressmen Demand Probe into DOJ Indictment

Adani Group stocks, including Adani Enterprises, Adani Power, and Adani Green Energy, witnessed a sharp rise on February 11, 2025, after reports emerged that several US Congressmen had written to the newly appointed Attorney General of the United States, Pamela Bondi, demanding a probe into the previous Department of Justice’s (DoJ) indictment of Adani Group officials.

Adani Enterprises and Adani Power shares jumped over 4% each, while Adani Green Energy and Adani Energy Solutions gained more than 3%. In addition, Adani Ports and Adani Total Gas stocks also gained over 1% each as the Indian stock market declined overall.

One of the biggest reasons for this rally was the report that on February 10, six US Congressmen including Lance Gooden, Pat Fallon, Mike Haridopolos, Brandon Gill, William R. Timmons, and Brian Babin had written a letter to Attorney General Pamela Bondi regarding what they called “questionable” decisions by the DoJ under the Biden administration when it indicted officers of the Adani Group on bribery scam allegations.

The indictment claims that billionaire industrialist Gautam Adani has been involved in a scheme of paying over $250 million in bribes (approximately ₹2,100 crore) to the Indian officials so that they will favorably alter the terms for the solar power contracts. Earlier, the Adani Group dismissed the allegations in November 2024 as being baseless.

In their letter, Congressmen highlighted that US-India relations were important in which India has been found as one of the significant allies of the United States. They further stated that an approach by the Biden administration towards the Adani case jeopardized diplomatic and economic ties between the two nations.

“Some of these decisions involved selectively pursuing and abandoning cases, often acting against America’s interests at home and abroad, jeopardizing relationships with close allies like India,” the Congressmen wrote. They emphasized that the US-India partnership is not only a political and trade relationship but has deep socio-cultural connections as well, which would be seriously impacted by any disruption to this relationship.

The Congressmen further argued that the DOJ’s decision to pursue the case against Adani Group was flawed.

One such judgment constitutes a highly dubious pursuit of a case against the Adani Group, an Indian company whose officers are located in India. The case rests on allegations that members of this company in India prepared to bribe officials in India who are located only in India.”. Instead of referring the case to appropriate Indian authorities, the Biden DOJ decided to prosecute the company’s executives without there being any actual injury to US interests, as they argued.

The Congressmen suggested that the DOJ’s decision lacked a compelling reason and could complicate relations with a strategic geopolitical partner like India. They also linked the issue to the potential return of former President Donald Trump to the Oval Office, stating that improving economic relationships with valuable partners like India would be crucial for revitalizing America’s economic prosperity.

This ill-conceived policy came at the cost of jeopardizing our bilateral relationship with a key geopolitical ally like India just before President Trump’s election to return to the White House. Given President Trump’s intentions to restore America’s economic growth, our bilateral economic relationship with valued partners in India and around the world operates as a pertinent ingredient to that end,” they wrote.

The letter and the implications thereof caused a response among investors in positive terms that drove the rally for Adani Group stocks. Analysts feel that if the US administration is inclined to rethinking the action by the DOJ, it may make the group an even stronger force among investors. The Indian government has remained mum on the development so far but observers expect these developments to eventually find a role in future trade and diplomatic dialogue between the two nations.

(With inputs from PTI)