The Adani Group clarified on November 23 that it had not entered into any binding agreement to operate Kenya’s main airport, responding to reports that Kenya had canceled more than $2.5 billion in contracts after an indictment by the United States for corruption.

The group was responding to requests regarding reports that Kenyan President William Ruto had ordered the cancellation of a procurement process that would award control of the country’s main airport to the Adani group, following the indictment of his founder in the United States.

Regarding the agreement signed last month to build and operate key power transmission lines in Kenya for 30 years, the group said the project does not fall within the disclosure requirements set by the Securities and Exchange Board of (SEBI). India), and therefore there is no need to disclose a cancellation.

Adani Enterprises Ltd, the group’s flagship company which oversees its airport operations, confirmed that it had established a subsidiary in Kenya in August with the aim of modernizing and managing airports.

“While the company was in discussions with the competent authority for the said project, to date neither the company nor its subsidiaries (i) have secured any airport project in Kenya, or (ii) have concluded no binding or definitive agreement in relation to any airport in Kenya,” the company said.

The company neither confirmed nor denied reports that Kenya canceled the airport deal.

In a separate filing on October 9, Adani Energy Solutions Ltd, which operates power transmission lines, confirmed that it had won the contract to build transmission lines in Kenya. Following this, it created a subsidiary in Kenya.

“We submit that the project does not fall within the scope of point 4 of paragraph B, Part A, Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as as amended (Sebi Listing Rules) which requires notification to be made for any award, bagging/receipt, modification or termination of orders/contracts awarded/bagged otherwise than in the ordinary course of business,” he said, refusing to confirm or deny the cancellation.

The group added that if the project were to be canceled, it would still not require disclosure under SEBI regulations.

Under the proposed airport deal, worth almost $2 billion, the Adani Group was to add a second runway at Nairobi’s Jomo Kenyatta International Airport and upgrade the passenger terminal, in addition to operating the airport under a 30-year lease.

On November 21, President Ruto announced the cancellation of a separate $736 million, 30-year public-private partnership with an Adani Group company to build power transmission lines. The move follows the indictment of Gautam Adani, the group’s founder and chairman, and seven others by US authorities for allegedly paying $265 million in bribes to Indian officials in exchange for lucrative contracts supply of solar energy.

The Adani Group denied the allegations, calling them baseless, and said it would pursue all legal avenues.

The tender for the operation of Kenya’s main airport was suspended after local protests. Additionally, Adani Energy Solutions Ltd had last month signed an agreement with Kenya Electricity Transmission Company Ltd (KETRACO) to develop three transmission lines and two substations.

(With inputs from PTI)