Billionaire businessman Gautam Adani, one of the world’s wealthiest individuals, has been charged in the United States for allegedly orchestrating a $265 million bribery and fraud scheme. The accusations have sent shockwaves across global financial and energy sectors, as Adani and seven other executives are accused of using corrupt practices to secure massive contracts in India’s solar energy sector. Here’s a breakdown of the allegations.
Bribery Allegations to Secure Solar Energy Contracts
According to an indictment unsealed by a US District Court in New York, Adani and his associates paid or planned to pay $265 million in bribes to Indian government officials. These payments were allegedly made to secure solar energy contracts that would allow Adani Green Energy Ltd. and another company to supply 12 gigawatts of solar power to the Indian government. This amount of energy is enough to light millions of homes and businesses across India.
The contracts, which were expected to generate over $2 billion in profits over 20 years, faced hurdles because Indian state-run electricity distributors were reluctant to buy energy at the high prices quoted by the companies. Prosecutors claim the Adani group turned to bribery to overcome this resistance and finalize the lucrative deals. Evidence allegedly includes cellphone records, documents detailing bribe amounts, and digital analyses of payment options.
Fraud Accusations Targeting US Investors
The indictment goes beyond bribery, accusing Adani and his co-defendants of deceiving US and global investors to raise funds. By falsely claiming their company had strong anti-bribery policies and had not engaged in corruption, Adani and others reportedly secured over $3 billion in loans and bonds from Wall Street investors and global financial institutions.
To make the project appear legitimate, prosecutors allege the defendants portrayed themselves as leaders in clean energy while secretly engaging in corrupt practices. At the same time, investors were reassured that the company had high ethical standards. These misrepresentations reportedly allowed Adani Green to attract financing at favorable terms without revealing the risks of corruption.
Adani Financial Controversy: Hindenburg Research Reports $310 Million Frozen by Swiss Authorities
US prosecutors say Adani and other senior executives, including Sagar R. Adani, Gautam’s nephew, and Vneet S. Jaain, a former chief executive of Adani Green, held frequent meetings to plan and discuss the bribery scheme. They allegedly used code names for Adani, such as “Numero Uno” and “The Big Man,” to maintain secrecy.
Legal and Financial Repercussions
The allegations have triggered both criminal and civil actions in the United States. The Department of Justice (DOJ) has charged Adani and other executives with securities fraud, wire fraud, and conspiracy. The Securities and Exchange Commission (SEC) has also filed a lawsuit, accusing them of violating anti-fraud provisions in US securities laws. Both cases are being heard in federal court in Brooklyn, New York.
The DOJ claims Adani’s group obstructed investigations by the FBI, DOJ, and SEC. The evidence allegedly includes cellphones, spreadsheets, and even photographs of documents summarizing bribe payments. The FBI Assistant Director in Charge, James Dennehy, stated that the group’s actions defrauded investors and undermined the integrity of financial markets.
Several other individuals, including former executives of a renewable energy company listed on the New York Stock Exchange and employees of a Canadian institutional investor, were also implicated in the bribery scheme. They are accused of violating the Foreign Corrupt Practices Act and participating in efforts to conceal the conspiracy.
A Tumultuous Year for Adani Group
This is not the first time Gautam Adani has faced allegations of misconduct. In 2022, US-based short-seller Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud. While the group denied those allegations, calling them “malicious and baseless,” its stock value plummeted. The new charges have further tarnished the group’s reputation, with the indictment describing an elaborate effort to enrich themselves through corruption.
Adani’s company has denied wrongdoing in the past, and it is likely to defend itself against these serious accusations. Meanwhile, US officials stress that the charges aim to protect investors and uphold financial transparency.
