US Indicts Indian Billionaire Gautam Adani in Alleged $250 Million Bribery Scheme
Indian billionaire Gautam Adani and seven executives, including his nephew Sagar Adani, have been indicted by US prosecutors for their alleged involvement in a massive bribery and fraud scheme tied to a solar power project in India. The Department of Justice (DOJ) alleges the group paid over $250 million in bribes to Indian government officials between 2020 and 2024 to secure lucrative solar energy contracts.
The DOJ stated that the bribery scheme aimed to secure state-backed contracts projected to generate over $2 billion in post-tax profits across two decades. According to Deputy Assistant Attorney General Lisa Miller, the alleged crimes involved misleading investors and banks, obstructing justice, and obtaining financing through fraudulent means. Evidence reportedly includes phone records, photographs, and financial documents detailing the bribes.
Shares of Adani Group’s listed companies plunged by 10% to 20% following the news, erasing nearly $30 billion in market value. The developments come amidst ongoing scrutiny of the conglomerate, which faced accusations of stock manipulation and accounting fraud by US-based Hindenburg Research in early 2023. The fallout from those allegations had already wiped over $80 billion from Adani’s net worth.
The DOJ’s investigation has spurred political tensions in India, with opposition parties renewing demands for a parliamentary inquiry into Adani’s businesses. The Indian National Congress has called for greater accountability from the ruling Bharatiya Janata Party, given Adani’s close ties to Prime Minister Narendra Modi.
The indictment also revealed that US authorities are pursuing parallel civil charges. The Securities and Exchange Commission (SEC) accused executives from Adani Green Energy Ltd and Azure Power Global of misrepresenting their financial activities to secure $175 million from US investors. The SEC highlighted that these contracts, obtained through alleged bribes, were crucial in bolstering the companies’ financial standing.
Adani Green acknowledged the allegations in communications with Indian stock exchanges, stating that it would pause its $600 million bond issuance plans. The company and its subsidiaries maintain that they are fully compliant with legal standards. A spokesperson for the Adani Group described the allegations as “baseless” and reaffirmed the organization’s commitment to transparency and governance.
Adani, once Asia’s richest person, now ranks as its second-wealthiest individual, with a fortune exceeding $85 billion. Despite his business empire spanning ports, power, and clean energy, this latest scandal poses a significant challenge to restoring his conglomerate’s reputation.