Adani Group: Why are Japanese & Middle Eastern banks maintaining ties with Adani Group unlike western banks? Sanjay Asher explains

Sanjay Asher, Senior Partner, Crawford Bayley & Co, says there would be a legal divide between the European banks and the Middle Eastern and the Japanese banks. Having regard to the facts and circumstances, if the Japanese and the Middle Eastern banks had come to a decision to support the Adani Group, then they would have surely done their homework.

Are banks seeing problems associated with Adani Group on a long-term basis and not short term?
Sanjay Asher: Absolutely, they are seeing from a long-term basis. They would have analysed the facts and circumstances and then they would have come to a decision or a conclusion that they want to support the Adani Group. They would have considered not only the financial position but also the legal position as it stands before the SEC and the DOJ and then come to this particular decision in my view.

Also, there seems to be a global divide between the stakeholders. On one hand, you would see that Japanese lenders, Middle East banks are lending their support. But few of the names like Barclays and Jefferies are thinking on the other side. Why do you think there is a global divide?
Sanjay Asher: There are always two views on any legal issues. Obviously, there would be a legal divide between the European banks and the Middle Eastern banks and the Japanese banks. Now both the banks or both the banks of different jurisdictions would have analysed and then they would have come to a conclusion. But having regard to the facts and circumstances, if the Japanese and the Middle Eastern banks had come to a decision to support the Adani Group, I am sure they would have done their homework.

How should investors look at this because the global divide would always be there, but the important factor for investors is that they are investing their money and these developments are a little complex?
Sanjay Asher: I would see from a long-term perspective or a medium-term perspective and I would say that from a medium-term to long-term perspective, it is all green.

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