Adani Group releases tax transparency reports to restore investor confidence

To affirm its dedication to stakeholders, the Adani Group published its tax transparency reports for the financial year 2023-24 on Sunday, February 23. The reports reveal a total tax contribution amounting to Rs 581.04 billion, representing a notable increase from Rs 466.10 billion in the prior year, which underscores the conglomerate's expanding economic influence.

The reports were independently prepared by seven of the group's publicly listed entities, including Adani Enterprises, Adani Ports, and Adani Green Energy, and they provide a comprehensive overview of both direct and indirect tax contributions from global operations. Furthermore, the total tax figure encompasses contributions from subsidiaries such as NDTV, ACC, and Sanghi Industries. To enhance the credibility of the data, the Adani Group has enlisted an independent professional agency for verification, thereby reinforcing its commitment to ethical corporate practices.

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

Tax transparency for investor confidence

The voluntary disclosure of these tax reports follows several months after US prosecutors charged Gautam Adani and other executives of the Adani Group with allegedly orchestrating a bribery scheme exceeding $250 million to obtain favourable solar energy contracts in India. The indictment issued in November 2024 claimed that the group misled US investors and financial institutions, allowing Adani Green Energy Ltd to secure approximately $3 billion through loans and bond offerings based on deceptive statements. The Adani Group has refuted these allegations, labelling them as "baseless" and pledging to contest them in court.

This indictment led to a significant drop in the stock value of the Adani Group, resulting in a loss of $26 billion in market capitalization. Additionally, it caused major investors to halt their investments in Adani Group projects, while firms like GQG Partners experienced financial difficulties due to their ties with the conglomerate.

The decision to voluntarily disclose tax information seems to be a calculated effort to restore investor trust and address the recent controversies affecting the conglomerate. As global corporate tax transparency continues to gain traction, Adani’s initiative is in line with the evolving standards of 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 has integrated its tax transparency initiative within its commitments to Environmental, Social, and Governance (ESG) principles. The reports categorize tax payments into direct contributions, which include corporate tax, duties, and charges; indirect contributions, which are collected on behalf of stakeholders; and additional payments such as social security contributions for employees.

In a related development, the US Securities and Exchange Commission (SEC) has requested assistance from Indian authorities regarding its investigation into Gautam Adani and his nephew, Sagar Adani, concerning alleged securities fraud.

As reported by Reuters, the SEC informed a New York district court of its efforts to serve its complaint to the founder of the Adani Group and his nephew, and it is seeking cooperation from India's law ministry to facilitate this process under the Hague Service Convention.