Adani Group releases tax transparency reports to rebuild investors' trust

The reports, published independently by seven of the group's listed entities, detail direct and indirect tax contributions across global

In a bid to demonstrate its commitment to stakeholders, the Adani Group on Sunday, February 23, released its tax transparency reports for the financial year 2023-24, disclosing a total tax contribution of Rs 581.04 billion. This marks a significant increase from Rs 466.10 billion in the previous year, reflecting the conglomerate’s growing economic impact.

 

The reports, published independently by seven of the group's listed entities—including Adani Enterprises, Adani Ports, and Adani Green Energy—detail direct and indirect tax contributions across global operations. Additionally, tax paid by subsidiaries like NDTV, ACC, and Sanghi Industries is included in the total figure. The Adani Group has engaged an independent professional agency to verify the data, reinforcing its commitment to responsible corporate conduct.

 

 

Chairman Gautam Adani framed the disclosures as a testament to the group’s accountability. “Transparency is the foundation of trust, and trust is essential for sustainable growth,” he stated. “Every rupee we contribute to our nation’s finances reflects our commitment to transparency and good governance.”

 

Bid to rebuild investor sentiment

 

The voluntary release of these tax reports comes months after the US prosecutors charged Gautam Adani and other Adani Group executives with allegedly orchestrating a over $250 million bribery scheme to secure favourable solar energy contracts in India. The November 2024 indictment alleged that the group misled US investors and banks, enabling Adani Green Energy Ltd to raise approximately $3 billion through loans and bond offerings based on false and misleading statements. The Adani Group denied the allegations, calling them "baseless" and vowing to challenge them in court.

 

The indictment triggered a sharp decline in Adani Group's stock value, wiping out $26 billion in market capitalisation. It also resulted in major investors pausing investments in Adani Group projects, while investors such as GQG Partners facing financial setbacks due to their association with group. 

 

The voluntary tax disclosure appears to be a strategic move to regain investor confidence and counter the recent controversies surrounding the conglomerate. With global corporate tax transparency gaining momentum, Adani’s initiative aligns with evolving international best practices.

 

"By voluntarily disclosing information about its global tax contributions, the company strengthens its commitment to economic development, fosters stakeholder understanding, and builds trust through transparent tax practices," the statement reads.

 

The Adani Group positions its tax transparency initiative as part of its Environmental, Social, and Governance (ESG) commitments. The reports break down tax payments into direct contributions (corporate tax, duties, and charges), indirect contributions (collected on behalf of stakeholders), and other payments like social security contributions for employees.

 

US SEC seeks India's help in Adani case

 

Meanwhile, the US Securities and Exchange Commission (SEC) has asked Indian authorities for help in its investigation of Gautam Adani and his nephew over alleged securities fraud.

 

According to a Reuters report, the SEC told a New York district court that it was making efforts to serve its complaint on the Adani Group founder and his nephew, Sagar Adani, and was seeking help from India's law ministry to do so under the Hague service convention.