NEWYORK: Gautam Adani, the Indian billionaire behind the Adani Group, and several top company executives have been indicted by US authorities for their involvement in an alleged multi-million-dollar bribery and fraud operation related to a solar power project. The charges, announced on Wednesday by the US Department of Justice (DOJ), allege that Adani and his associates offered over $250 million in bribes to Indian officials to secure lucrative government contracts for solar energy projects.
The indictment, which also names seven other executives, including Adani’s nephew Sagar Adani, accuses the group of orchestrating a corrupt scheme to secure contracts for a massive solar energy plant, set to generate profits exceeding $2 billion over the next two decades. According to the DOJ, the accused individuals conducted these illegal activities between 2020 and 2024, using a combination of bribery, fraud, and misrepresentation to finance their ventures and deceive investors, including those in the US.
Shares of Adani Group companies took a significant hit following the announcement, with stock values plummeting by as much as 20%, wiping out nearly $30 billion in market value. The scandal has also sparked political tensions in India, where the opposition Congress Party has called for a parliamentary probe into Adani’s businesses, particularly given his close ties to Prime Minister Narendra Modi.
In response to the charges, the Adani Group issued a firm denial, calling the allegations “baseless” and reiterating its commitment to legal compliance and transparent business practices. “We assure our stakeholders and partners that we are a law-abiding organization,” the group said in a statement to the media.
The charges come on the heels of a previous scandal in early 2023, when short-seller Hindenburg Research accused Adani Group of stock manipulation and accounting fraud. At the time, the group’s market value plummeted by more than $80 billion, and Adani’s fortune was significantly impacted. The Hindenburg report had questioned the financial stability of the conglomerate, highlighting its high levels of debt and inflated stock prices.
Adani, who initially made his fortune in diamond trading before expanding into a range of industries including ports, power, and renewable energy, is currently Asia’s second-richest person, according to Bloomberg’s Billionaires Index. The new bribery charges could further damage the group’s reputation and its ambitious plans for growth in the clean energy sector.
The Securities and Exchange Commission (SEC) has also filed civil charges in connection with the alleged bribery scheme, accusing Adani and other executives of misleading investors and profiting from the corrupt contracts. The SEC claims that Adani Green Energy Ltd. raised over $175 million from US investors through false representations related to the bribery.
In light of the ongoing legal challenges, Adani Green has canceled its planned $600 million bond sale, according to reports from Reuters and the Financial Times. The company stated that the decision was made in response to the current legal situation, with a focus on maintaining financial stability.
The US authorities have highlighted detailed evidence of the alleged bribery, including cell phone data, photographs of documents, and financial analysis that tracks the illegal payments. Investigators say the bribes were part of a broader effort to conceal the illicit nature of the solar energy contracts and gain access to critical financing.
This latest legal controversy adds to the mounting pressure on the Adani Group, which has spent the past year working to restore its image and regain investor confidence following the previous allegations of financial misconduct.
