Adani Group Business Practices and Controversies

The Adani Group is a multinational conglomerate with a diverse portfolio of businesses.

The group's business practices have been scrutinized in recent years, with allegations of tax evasion and environmental degradation.

Adani Group's operations in Australia have been particularly contentious, with protests against the company's coal mine and rail project in Queensland.

The group has also faced criticism for its labor practices, with allegations of mistreatment of workers in its Indian operations.

The Adani Group's history is a fascinating story of growth and diversification. The company was founded in 1981 by Gautam Adani, who started as a diamond sorter in Mumbai before returning to Ahmedabad to manage his brother's plastics business.

Gautam Adani's entrepreneurial spirit led him to establish Adani Exports in 1988, which marked the beginning of the Adani Group's legacy. This commodity trading firm dealt in agricultural and power products, laying the foundation for the conglomerate's expansive portfolio.

Readers also liked: Gautam Adani

Here's a brief timeline of the Adani Group's major milestones:

The Adani Group's history is a testament to Gautam Adani's vision and leadership, which has enabled the company to grow into a global conglomerate with a diverse portfolio of businesses.

The Adani Group has faced criticism for its business practices, particularly in India. In 2020, the company changed its name to Bravus Mining and Resources.

Gautam Adani, the chairman and MD, has been accused of cronyism due to his close ties with former Indian Prime Minister Narendra Modi and the Bharatiya Janata Party (BJP). This has led to allegations that the company has received favorable treatment in government contracts.

The company has leased large tracts of land from the government at very low rates, with some areas going for as little as one U.S. cent a square meter. This has raised concerns about the fairness of the deals and the impact on local communities.

Adani's business practices have also been criticized for causing environmental damage, particularly in the Kutch region where the company acquired land for a power plant at a rate of 19 cents per square meter. Villagers living in the area alleged that the land was signed off by village chiefs without their knowledge.

Related reading: Ayala Land

Adani Mining changed its name to Bravus Mining and Resources in 2020. This name change occurred amidst various criticisms surrounding the company.

The Adani Group has been accused of cronyism due to its close ties with former Indian Prime Minister Narendra Modi and his ruling Bharatiya Janata Party (BJP). This relationship has led to allegations of favoritism in government contracts.

The Adani Group has leased over 7,350 hectares of land from the government for as little as one U.S. cent a square meter. This has raised concerns about the company's business practices and its treatment of local communities.

In Jharkhand, the Adani Group's Godda power plant received an exception to the state's energy policy, sparking further allegations of cronyism. The company has denied any wrongdoing.

The Forbes Asia noted that the Adani Group has sublet land to other companies, including state-owned Indian Oil Co., for significantly higher rates than it paid for the land. This has led to accusations of profiteering at the expense of local communities.

The Adani Group has faced numerous allegations of tax evasion, with a notable instance being the arrest of Rajesh Adani, the company's managing director, on charges of custom duty evasion amounting to ₹80 lakh in 2010.

In 2017, Indian customs alleged that the Adani Group was diverting millions of funds from the company's books to Adani family tax havens overseas, using a Dubai shell company to divert the funds.

Between 2021 and 2023, Swiss authorities froze a total of $310 million in five different accounts linked to the Adani group following investigations into money laundering.

Suggestion: KPMG Tax Shelter Fraud

A complex money trail from India through South Korea and Dubai was mapped out by the Directorate of Revenue Intelligence in 2014, leading to an offshore company in Mauritius allegedly owned by Vinod Shantilal Adani, the older brother of Gautam Adani.

The Directorate of Revenue Intelligence forwarded a letter to the then SEBI chairperson, U. K. Sinha, in 2014, along with a CD containing evidence suggesting the improper diversion of Rs. 2,323 crore, but SEBI did not publicly acknowledge the receipt of this letter until September 2023.

In 2025, India's DRI initiated an investigation into Adani Defence over alleged customs duty evasion totaling approximately ₹77 crore (US$9.1 million), concerning the company's alleged misclassification of certain missile components as exempt from import duties and taxes.

Intriguing read: 2014 JPMorgan Chase Data Breach

The Competition Commission of India (CCI) has granted in-principle approval to Adani Group's proposal to acquire Jaiprakash Associates (JAL). This approval is a mandatory step after a Supreme Court ruling that requires companies to secure CCI approval before submitting their resolution plans for creditor voting under the Insolvency and Bankruptcy Code (IBC).

The proposed deal involves Adani Enterprises Ltd (AEL), Adani Infrastructure and Developers Pvt Ltd (AIDPL), or any other Adani entity acquiring up to 100% stake in JAL. This means Adani Group has a significant opportunity to take over JAL's assets and operations.

Jaiprakash Associates has a substantial portfolio of real estate and infrastructure assets, including major developments in Greater Noida, Noida, and near the upcoming Jewar International Airport. These assets include Jaypee Greens, Jaypee Greens Wishtown, and the Jaypee International Sports City.

The company also owns three commercial/industrial office spaces in Delhi-NCR and operates five hotels across Delhi-NCR, Mussoorie, and Agra. However, JAL's cement plants remain non-operational, and the company has leased limestone mines in Madhya Pradesh.

CCI has also approved Dalmia Bharat's proposal for JAL, alongside Adani Group's proposal. Other interested bidders like Vedanta Group, Jindal Power, and PNC Infratech have approached CCI for similar approvals.

Recommended read: Delhi Cloth & General Mills

The Adani Group has been actively involved in coal mining in Australia, with a major project being the Carmichael coal mine in Queensland's Galilee Basin. This project was launched in 2014 with the support of the Australian and Queensland Governments.

The Carmichael coal mine is expected to operate for 60 years, with an annual capacity of 10 Mt of thermal coal. The mine has drawn criticism for its environmental impacts on the Great Barrier Reef, water usage, and carbon emissions.

In response to pressure from environmental activists, some international banks refused to finance the project. The Adani Group eventually announced that the project would be 100% financed by their own resources.

The head of Adani's Australian mining division, Jeyakumar Janakaraj, faced scrutiny due to his association with a mining pollution incident in Zambia. He served as operations director at Konkola Copper Mines in 2010, when the company faced legal charges concerning the discharge of hazardous wastewater into the river.

The Australian Government characterised Adani's omission of Janakaraj's involvement in the African pollution incident as a "mistake." However, the government opted not to pursue any legal action against Adani.

The Australian Government has been taken to court by the Australian Conservation Foundation over the Carmichael mine's impact on groundwater and the country's water resources. The case is still ongoing as of September 2020.

The Carmichael mine received its final approvals from the government in July 2019, and construction commenced soon after. The first shipment of high-quality coal from the mine was assembled at the North Queensland Export Terminal in December 2021.

If this caught your attention, see: China Resources

The Adani Group's influence on media control is a concerning issue. In August 2022, the group's unit, AMG Media Networks Limited, made a bid to buy RRPR Holding, owner of 29.18% of national news broadcaster NDTV.

This move raised eyebrows due to Adani's close ties with Prime Minister Narendra Modi's ruling Bharatiya Janata Party. Adani acquired the stake via a third party without informing NDTV's founders, Radhika and Prannoy Roy.

The deal also sparked concerns about editorial independence in India. By December 2022, Adani was described as controlling the largest shareholding in NDTV. Before the acquisition, NDTV was critical of the government but is now reportedly "supine."

In another concerning incident, freelance journalist Ravi Nair was allegedly issued an 'arrest warrant' by the Delhi police without prior summons after Adani group filed a defamation case against him in 2022.

The Adani Group's media control has only expanded since then. In December 2023, the group acquired a majority stake in Indo-Asian News Service, and Independent News Service, the parent company of India TV, is also backed by Gautam Adani, the chairman of the Adani group.

Readers also liked: Adani Group Latest News

The Adani Group is a conglomerate with a vast array of affiliated companies and subsidiaries. The group operates in various industries, including energy, utilities, cement, transport and logistics, technology, and consumer services.

One notable affiliated company is Adani Power, which is involved in thermal power generation. The group also has a significant presence in the renewable energy sector through its subsidiary Adani Green Energy.

Adani Enterprises Limited is one of the notable subsidiaries of the Adani Group, operating in multiple sectors such as solar manufacturing, renewable power generation, and agri logistics. The group's presence in the logistics sector is also notable, with companies like Adani Ports & Special Economic Zone Ltd and Adani Road Transport (ART) operating in this space.

Here's a list of some notable subsidiaries of the Adani Group:

The Adani Group's presence in the consumer services sector is also notable, with companies like Adani Digital Labs (ADL) and Adani Realty offering various services.

The Adani Group is a major player in India's energy and power sector. Adani Power Limited (APL) is one of India's largest private-sector power generation companies, established in 1996.

APL operates thermal power plants and is expanding its renewable energy portfolio with solar power projects. It's impressive to see how far the company has come since its inception.

Adani Power has a total installed capacity of over 11 GW, making it a significant contributor to India's power generation. This is a testament to the company's commitment to meeting the country's growing energy demands.

Adani Green Energy Limited (AGEL) has emerged as a prominent player in India's renewable energy sector, established in 2015. It focuses on the development, operation, and maintenance of renewable energy projects, primarily solar and wind power.

AGEL has a portfolio of over 13 GW of renewable energy projects, including solar and wind power projects. This is a remarkable achievement, especially considering the company's relatively short history.

Here's a brief overview of the Adani Group's energy and power subsidiaries:

The Adani Group has a strong presence in India's infrastructure and logistics sector. Adani Logistics operates a network of warehouses and logistics hubs across the country, providing solutions for various industries such as automotive, retail, and e-commerce.

Adani Ports and Special Economic Zone Limited (APSEZ) is India's largest private port operator, with 12 ports and terminals across the country. It was established in 1998 and operates ports in Gujarat, Maharashtra, and Karnataka.

Adani Transmission Limited is engaged in the transmission and distribution of electricity, building, operating, and maintaining transmission lines and substation networks since its establishment in 2015.

Adani Ports and Special Economic Zone Limited (APSEZ) is India's largest private port operator, established in 1998. It manages special economic zones (SEZs) to promote trade and industrial development.

APSEZ operates a network of 12 ports and terminals across the country, with a presence in Gujarat, Maharashtra, and Karnataka. This makes it one of India's largest port operators.

Here's a breakdown of APSEZ's port operations:

By leveraging its vast port network, APSEZ plays a crucial role in facilitating trade and commerce in India.

In the realm of infrastructure and logistics, transmission plays a vital role in getting electricity from power plants to our homes and businesses.

Adani Transmission Limited is a key player in this space, established in 2015 with a focus on building, operating, and maintaining transmission lines and substation networks.

This company aims to facilitate the efficient distribution of electricity, which is crucial for our daily lives.

Here are some key facts about Adani Transmission Limited:

Adani Total Gas Limited is involved in natural gas distribution. The company was established in 2020 as a joint venture between the Adani Group and Total SE.

It distributes natural gas for industrial, commercial, and residential use. This includes promoting the adoption of compressed natural gas (CNG) and piped natural gas (PNG) for transportation and domestic use.

Adani Total Gas Limited has a primary goal to provide natural gas for various uses.

Suggestion: Gujarat Gas

Adani Wilmar Limited is a joint venture between the Adani Group and Wilmar International. Established in 1999, it's a leading player in the edible oil and agribusiness sector. Adani Wilmar manufactures and markets a wide range of products.

Some of the key products manufactured and marketed by Adani Wilmar include edible oils and other agribusiness products.

Adani Group has shown interest in acquiring Jaiprakash Associates (JAL), a debt-ridden company with a portfolio of major real estate and infrastructure assets.

JAL's assets include Jaypee Greens in Greater Noida, Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar International Airport.

The company also owns three commercial/industrial office spaces in Delhi-NCR and operates five hotels across Delhi-NCR, Mussoorie, and Agra.

Adani Group's proposed deal involves acquiring up to 100% stake in JAL, subject to winning the ongoing insolvency bid.

A unique perspective: Jaypee Group

Adani's corporate debt totalled $30 billion in 2022, leaving the company vulnerable to financial strain.

A CreditSights report in August 2022 warned that Adani's aggressive expansion had hurt its cash flow and credit metrics.

Adani is making a massive investment in Kerala, building a Logistics Park across 70 acres, covering 1.3 million sq. ft., and investing over ₹600 crore.

This Logistics Park is designed with a focus on Talent, Technology, and Warehousing, aiming to empower local SMEs through an integrated supply chain ecosystem.

The park's advanced design will connect Kalamassery to global markets, making Kerala an even more attractive trade destination.

Adani Power Limited (APL), one of India's largest private-sector power generation companies, is also expanding its renewable energy portfolio with solar power projects.

Here are some key facts about Adani Power:

With a total installed capacity of over 11 GW, Adani Power operates thermal power plants across several states in India, including Gujarat, Maharashtra, and Rajasthan.

Intriguing read: Adani Power