According to Reuters, the New York-based stock exchange S&P Dow Jones Indices has dropped Adani Ports and Special Economic Zone Ltd from its sustainability index because of the company’s commercial relations with Myanmar’s military, which has been accused of human rights abuses following a February coup.
According to a study published last month, the Adani Group paid the Myanmar Economic Corporation $30 million (roughly Rs 225 crore) in “land lease payments.” The amount was paid by India’s largest private multi-port operator for the construction of a port in Yangon on land leased from the Myanmar Economic Corporation, which is backed by the country’s military.
Prior to the market opening on April 15, the Adani Ports and Special Economic Zone Ltd will be excluded from the Dow Jones index. The company’s listing on the BSE Sensex, a domestic index, took a hit as a result of the growth. By 10.20 a.m. on 13th April, its stock had dropped 4.25 per cent from its opening price on 12th April.
The corporation is yet to issue a formal announcement about Dow Jones’ decision. The Adani Group said in February that it had not met with military leaders to obtain permission for the terminal. However, videos and images obtained by ABC News in the United States (US) in March showed that Adani Ports Chief Executive Karan Adani met Senior General Min Aung Hlaing, the army chief who led the coup against the elected government, in July 2019. According to ABC, a 2019 United Nations (UN) study listed Adani Ports as one of the firms that have worked with the military conglomerate.
According to a statement on the Treasury Department’s website, on March 25, the United States of America (USA) placed sanctions on Myanmar Economic Corporation and Myanmar Economic Holdings Public Company Limited. Washington’s action freezes all funds owned by the companies in the United States and targets Myanmar’s military’s economic interests.
Coup of Myanmar
The military coup in Myanmar came after the National League for Democracy and Aung Suu Kyi won a landslide victory in November’s national elections, with the military-backed Union Solidarity and Development Party faring poorly in its primary strongholds. The army of the country rejected the government, citing unfounded claims of fraud. In reality, after the outbreak of a coronavirus, it was notified that the coup was the result of failing the government to postpone the November elections.
But General Min Aung Hlaing said on the 8th of February that after the end of the emergency, free and fair elections are to be held to give the military control to the winner.
In Myanmar, security forces have heavily attacked demonstrators who are protesting against the coup. Hundreds of these people have been killed. The activities have been criticized by the United Nations, leaders of several countries and human rights organizations in various incidents of shooting at demonstrators.
Recent news events have prompted analyzes of the company’s threats about its business links with Burma’s troops, who allegedly committed serious international human abuses, the announcement said. Earlier this month, the Australian Centre of International Justice (ACIJ) and the Justice for Myanmar (JFM) advocacy group have called on the NSE and the Bombay Stock Exchange (BSE) to acknowledge the accusations. The civil freedom organizations have said that Adani Ports is ‘real misleading’ their player, but no action is being taken up to now. This indicates that Adani Ports and other companies are still having commercial implications by funding the Myanmar Military, said Justice Yadanar Maung for the Myanmar spokesperson, welcoming the S&P ruling.
What are the claims against the business of Gautam Adani?
Adani Ports and the Economic Special Zone is one of India’s leading private port operators. And in Yangon, it plans to construct a 290-million-dollar port on land leased from the Myanmar Economic Corporation (MEC). The concern is that the MEC is controlled by the Myanmar army. And when it overthrew the regime on February 1, it was accused of violating human rights. At least 700 civilians were killed by the coup.
The event was the subject of condemnation from around the world, including US and British sanctions against MEC and Myanmar Economic Holdings Public Limited (MEHL). The sector of Adani Ports with the Myanmar military company shows its non-ethical activities as a result of its exposure to the climate crisis by participating in Australia’s proposed coal Adani Carmichael scheme, ACIJ’s Executive Director Rawan Arraf pointed out. The Adani Ports spokesperson said in a previous statement that the firm was examining the claims. We track the situation in Myanmar closely, as our global peers do, and we will consult the relevant authorities and stakeholders to request their advice on the way forward.
Will it affect Adani’s business with other countries?
Well, we don’t know this for sure yet. But what we can anticipate is Adani having a bad time now. Myanmar crisis is a very sensitive topic in the global economic, political and social atmosphere. The news of Adani being related to this entire havoc is somehow or the other going to affect its surging position and reputation in the global as well as Indian.
Is there any other reason for the drop in Adani Ports’ price?
After a strong performance in recent months, despite the pandemic wreaking havoc, Adani Ports’ share price has taken a dive with this news. This isn’t solely due to the Myanmar crisis. The sector is still concerned about a drop in foreign trade as a result of the second outbreak of COVID-19 infections, which has prompted countries all over the world to be on high alert. The Sensex dropped 1,700 points as a result of this.