Gautam Adani, chairman of the India’s Adani Group and one of the world’s richest individuals, has been indicted in the United States on charges of orchestrating a multibillion-dollar bribery scheme, Al Jazeera reports, citing the Department of Justice.
The indictment alleges Adani, along with two other executives – his nephew Sagar Adani and Vneet Jaain of Adani Green Energy – conspired to pay over $250 million in bribes to Indian government officials between 2020 and 2024 to secure lucrative solar energy contracts. These contracts were projected to generate $2 billion in profits for the company.
The indictment further alleges that Adani Green Energy, based on these false representations, raised over $3 billion in loans and bonds. Five other individuals, including executives from another renewable energy company and employees of a Canadian institutional investor, face related criminal conspiracy charges.
The Adani Group vehemently denied the allegations in a statement Thursday, vowing to pursue all legal avenues. However, the news sent shockwaves through the markets. Shares of Adani Group companies lost some $28 billion in market value on Thursday, and Adani Green Energy cancelled a planned $600 million bond sale. Adani Green Energy shares plummeted 17 percent, with other Adani Group stocks experiencing double-digit losses.
Arrest warrants have been issued for Gautam and Sagar Adani, with US prosecutors intending to seek their extradition through international law enforcement channels. The charges involve violations of the US Foreign Corrupt Practices Act. Seven of the eight defendants are Indian citizens residing in India, while the eighth is a dual French-Australian citizen residing in Singapore.
The US Securities and Exchange Commission (SEC) filed related civil charges against Gautam Adani, Sagar Adani, and Cyril Cabanes, an executive at Azure Power Global identified as an employee of the Canadian investor. Court documents allege that conspirators used code names like “Numero Uno” and “The Big Man” to refer to Gautam Adani, while Sagar Adani allegedly used his cellphone to track bribe payments.
This latest indictment follows a January 2023 report by US-based short-seller Hindenburg Research, which accused Adani and his companies of stock manipulation and fraud – allegations the group denied. India’s Supreme Court subsequently ruled in favor of the Adani Group.
India’s opposition Congress party has called for a parliamentary investigation into the allegations, with leader Rahul Gandhi accusing Prime Minister Narendra Modi of protecting Adani. The timing is particularly noteworthy, as Gautam Adani recently announced a planned $10 billion investment in US energy security and infrastructure projects, creating a potential 15,000 jobs. The $32 billion Adani Group operates across diverse sectors, including ports, airports, power generation, and green energy.
