Indian billionaire Gautam Adani has been indicted by U.S. prosecutors for his alleged involvement in a $265 million bribery scheme aimed at securing power supply contracts and developing India’s largest solar power plant project.
This marks another major crisis for Adani’s conglomerate, the Adani Group, just two years after the company faced turmoil following a controversial short-seller report.
The U.S. Department of Justice has leveled multiple charges of fraud against Adani, along with seven other defendants, accusing them of paying bribes to Indian government officials. These payments were reportedly made to secure contracts that would yield an estimated $2 billion in profits over 20 years.
Additionally, the Adani Group is accused of raising over $3 billion in loans and bonds by concealing their corrupt activities from investors and lenders.
In a separate U.S. Securities and Exchange Commission (SEC) case, the Adanis, along with former Adani Green Energy CEO Vneet Jaain, face charges of securities fraud and conspiracy.
The SEC claims that during a 2021 bond offering, the Adanis made materially false or misleading statements regarding their company’s anti-corruption efforts, which were at odds with their alleged bribery scheme.The SEC also noted that a company central to the scheme, Azure Power, had been traded on the New York Stock Exchange.
Shares of Adani Green Energy and other firms in the Adani Group plunged following the announcement of the charges, erasing $20 billion in market value in a single day.
Adani Green’s shares dropped 16%, and several other stocks in the conglomerate fell by over 10%. Additionally, the group’s dollar-denominated bonds also took a hit.
The criminal charges highlight an ongoing investigation into the Adani Group’s practices, and the U.S. has issued arrest warrants for Gautam Adani and his nephew, Sagar Adani, who is also implicated in the scheme.
However, neither Adani nor his nephew are currently in custody, and the U.S. is expected to seek their extradition from India.
Political opponents of Indian Prime Minister Narendra Modi have long accused his administration of favoritism towards Adani, who is known to have close ties with Modi.
In response to the charges, India’s Congress party has reiterated calls for a parliamentary investigation into the Adani Group’s practices, which continues to face scrutiny in India after the release of the Hindenburg report.
Gautam Adani, with a net worth of $69.8 billion according to Forbes, is one of the world’s wealthiest individuals, but these criminal charges have raised serious concerns about his business empire’s future.
Shares of GQG Partners, a major investor in Adani, also dropped sharply, reflecting growing uncertainty over the tycoon’s legal battles.
