Billionaire industrialist Gautam Adani and key associates are facing charges from US prosecutors in connection with an alleged $250 million bribery scheme aimed at securing favorable terms for solar energy contracts in India. These contracts, prosecutors claim, could yield profits exceeding $2 billion.
The indictment, filed in the Eastern District of New York, accuses Adani, his nephew Sagar Adani, and former executives of Adani Green Energy Ltd., including ex-CEO Vneet Jaain, of engaging in securities fraud, conspiracy, and wire fraud. The charges extend to allegations that the Adani Group concealed these bribes from US banks and investors who financed its projects.
Bribery Allegations and Concealment
Between 2020 and 2024, the defendants allegedly paid $250 million to Indian government officials to secure solar energy contracts. According to court documents, Adani and his co-conspirators, including Ranjit Gupta and Rupesh Agarwal of Azure Power Global, orchestrated the payments through elaborate means.
Some conspirators reportedly referred to Gautam Adani using code names like “Numero Uno” and “The Big Man.” The indictment revealed that Sagar Adani allegedly used his personal cellphone to track bribery specifics and handled sensitive communications, which US prosecutors obtained through judicially authorized searches.
Global Implications
The case has significant international ramifications, as Adani Green Energy raised $175 million from US investors, while Azure Power’s stock traded on the New York Stock Exchange. These ties to US markets brought the case under the jurisdiction of US anti-fraud and anti-corruption laws.
The charges also implicate three former employees of the Canadian pension fund CDPQ, a shareholder in Adani-linked firms. The employees allegedly obstructed the investigation by destroying emails and providing false information to authorities.
Adani Group’s Response
The Adani Group has not issued an official statement regarding the allegations, but it has previously denied similar accusations. This latest turmoil follows a $150 billion market value wipeout triggered by allegations of “brazen stock manipulation and accounting fraud” by Hindenburg Research in January 2023.
Legal and Financial Fallout
The US Securities and Exchange Commission (SEC) has also filed a civil case against the Adanis, seeking penalties and bans on holding officer or director positions in US-listed companies. Additionally, federal charges under the Foreign Corrupt Practices Act target five other individuals involved in the alleged bribery.
This indictment puts Adani and his conglomerate under intense scrutiny, potentially jeopardizing one of the world’s largest solar energy projects while reigniting questions about corporate governance and corruption in international markets.
