In recent years, the Adani Group, helmed by billionaire Gautam Adani, has repeatedly found itself at the center of allegations involving corruption, regulatory violations, and financial misconduct. Once hailed as a symbol of India‘s economic resurgence, the group is now under the scanner for alleged business malpractice and crony capitalism. The implications of these accusations are far-reaching, casting a shadow on India’s governance and tarnishing its global reputation.

For years, critics and independent watchdogs have accused the Adani Group of circumventing business norms. The conglomerate, which spans infrastructure, power, mining, and logistics, has often been accused of exploiting regulatory loopholes and leveraging its political connections to gain an unfair advantage. Allegations have ranged from tax evasion to environmental violations, and more recently, to bribery for securing contracts.

The tipping point came in January 2023, when the U.S.-based financial research firm Hindenburg Research published a damning report accusing the Adani Group of stock manipulation, accounting fraud, and operating through shell companies in tax havens. The report, which sent Adani Group shares into a freefall, claimed the conglomerate had inflated its stock values to raise funds and sustain its operations. Hindenburg’s findings raised alarms about corporate governance and transparency within one of India’s largest business houses.

The latest blow to the Adani Group’s credibility comes from the U.S. Securities and Exchange Commission (SEC). The SEC has reportedly indicted Adani and his associates for allegedly using funds raised from American investors to bribe Indian state governments for lucrative contracts. This marks a significant development, as it places the Adani Group under U.S. jurisdiction due to the involvement of American shareholders.

The allegations highlight not just the misuse of foreign investments but also the complicity of Indian state governments in enabling such practices. The SEC’s indictment underscores the global dimensions of the Adani controversy, suggesting that the conglomerate’s operations have far-reaching implications beyond Indian borders.

In India, the revelations have led to a growing demand for a thorough investigation into the Adani Group. Opposition parties, activists, and civil society organizations have called on the Modi government to probe the allegations, arguing that the credibility of India’s regulatory framework is at stake. However, the government’s response has been conspicuously muted.

Prime Minister Narendra Modi‘s perceived closeness to Gautam Adani has added fuel to the fire. Critics argue that Adani’s rapid rise to become India’s richest man coincided with Modi’s ascent to national power. Reports suggest that Adani’s financial support was instrumental in Modi’s political campaigns, both as Chief Minister of Gujarat and later as Prime Minister. This symbiotic relationship has led to widespread allegations of crony capitalism, with Modi accused of shielding Adani from scrutiny.

The Securities and Exchange Board of India (SEBI), the country’s financial regulator, has also come under fire for its handling of the Adani case. SEBI Chairperson Madhabi Puri Buch has faced accusations of financial irregularities and favoritism, further eroding public confidence in the institution. Critics argue that SEBI’s inability to act decisively against the Adani Group reflects broader systemic issues, where regulatory agencies are compromised by political interference.

The Adani controversy is not an isolated case. Over the years, the Modi government has been accused of protecting individuals and entities close to the ruling party. From allegations of corruption involving party leaders to irregularities in awarding contracts, the pattern of shielding wrongdoers has become a recurring theme. These actions undermine Modi’s claims of providing a “clean administration” and have led to a growing perception that the government prioritizes loyalty over accountability.

The fallout from the Adani controversy extends beyond India’s borders. The SEC’s involvement has brought international attention to India’s regulatory lapses and political favoritism. For Indians abroad, particularly in countries like the United States, the scandal has become a source of embarrassment. Diaspora communities now face uncomfortable questions about the state of governance and corruption in their homeland, tarnishing India’s image as an emerging global power.

The Adani controversy underscores the urgent need for institutional reforms in India. Regulatory agencies like SEBI must be empowered to operate independently, free from political interference. Transparency and accountability must be prioritized to restore public trust in governance.

The Modi government must also address the growing perception of cronyism. Failure to do so risks not only its political credibility but also the nation’s economic stability. A government that claims to be committed to the welfare of its citizens cannot afford to turn a blind eye to allegations of corruption, especially when they implicate some of the country’s most powerful individuals and institutions.

The allegations against the Adani Group are more than just a corporate scandal; they are a test of India’s democracy and its ability to uphold the rule of law. The government’s unwillingness to act decisively sends a troubling message: that wealth and political connections can place individuals above accountability.

As the global spotlight continues to shine on the Adani controversy, India must confront the uncomfortable truths about its governance and regulatory systems. For a nation aspiring to be a global leader, the price of inaction is too high. It is time for India to clean house, not just for its own sake, but to restore its standing on the world stage.