Billionaire Gautam AdaniThe group on Saturday clarified reports that Kenya cut off more than US$2.5 billion in business following the US indictment on bribery charges, saying it had not entered into any binding agreement to operate Kenya’s main airport.

On the pact it had signed last month to build and operate key electricity transmission lines in Kenya for 30 years, the group said the project does not fall under Sebi’s disclosure rules, which does not warrant any disclosure of its suspension. The group was responding to messages sent by stock exchanges to confirm reports of Kenyan President William Ruto ordering that a procurement process that had been expected to give control of the country’s main airport after the conglomerate’s founder was indicted in the United States.

Adani company Ltd, the flagship company of billionaire Gautam Adani Group which houses its airport operations, in a filing said it had in August this year incorporated a spin-off subsidiary in Kenya to upgrade, modernize and manage airports. “While the company was in discussions with the relevant authority for the said project, neither the company nor its subsidiaries (i) has been awarded any airport project in Kenya, or (ii) entered into any binding or definitive agreement in relation to any airport in Kenya,” the company said .

It did not confirm or deny reports that Kenya canceled the airport deal. Adani Energy Solutions Ltd, the company that operates power transmission lines, said in a separate filing on October 9 that it was awarded the project to build transmission lines in Kenya. Subsequently, it had incorporated a defunct subsidiary in Kenya.

“We submit that the project does not fall within the ambit of Clause 4 of Para B, Part A, Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (Sebi Listing Regulations) requiring notice of allotment, packing/receipt, modification or termination of assigned/placed orders/contracts other than in the ordinary course of business,” it said and refused to confirm or deny the cancellation.

It went on to state that the award of the project was in the ordinary course of business of the company and its subsidiaries as they are engaged in the transmission and distribution of energy (among other things). The project will also not fall within the ambit of Clause 4 of Clause B, Part A, Schedule III of the Sebi Listing Regulations,” it added.

Under the proposed airport deal worth nearly US$2 billion, the conglomerate would add a second runway at Jomo Kenyatta International Airport and upgrade the passenger terminal. It was also to operate it on a 30-year lease. In his State of the Union address on Thursday, Kenya’s president also said he was suspending a separate 30-year US$736 million public-private partnership as a Adani Group companies signed with the Ministry of Energy and Petroleum last month to build power transmission lines. It followed US authorities indicting the group’s founder and chairman Gautam Adani and seven others for allegedly agreeing to pay $265 million to Indian officials to win lucrative solar contracts.

The Adani group denied the allegations as baseless and said it would seek “all possible legal action”. The bid to operate Kenya’s largest airport was put on hold after local protests. Adani Energy Solutions Ltd had last month signed a project agreement with Kenya Electricity Transmission Company Ltd (Ketraco) to develop three transmission lines and two substations.