Indian Billionaire Gautam Adani Indicted in U.S. Over Bribery and Fraud Allegations

Indian billionaire Gautam Adani and seven others, including his nephew Sagar Adani, were indicted in New York on Wednesday by U.S. prosecutors for their alleged involvement in a multi-billion-dollar bribery and fraud scheme. The charges center on securing contracts to develop a major solar power plant in India.

The U.S. Department of Justice (DOJ) alleges that the Adani Group executives offered more than $250 million in bribes to Indian government officials to win lucrative solar energy supply contracts. According to the DOJ, these contracts were expected to generate more than $2 billion in profits over 20 years.

Authorities claim the scheme, which occurred between 2020 and 2024, involved frequent meetings among the accused, including one where Adani, 62, personally met with a government official to advance the plan. Evidence cited by prosecutors includes phone records, documents detailing bribe amounts, and analyses on how to pay and hide the bribes.

“This indictment alleges a scheme to pay over $250 million in bribes to Indian officials, mislead investors and banks to raise billions, and obstruct justice,” said Deputy Assistant Attorney General Lisa Miller. She added that the alleged crimes were committed to secure massive state energy contracts at the expense of U.S. investors.

Fallout and Denials

The allegations have sent shockwaves through the Adani Group, a conglomerate spanning industries from ports to clean energy. Following the news, shares in the group’s listed companies plunged 10% to 20% on Thursday, wiping out nearly $30 billion in market value, according to Reuters.

In a statement to CNN, the Adani Group called the accusations “baseless” and reaffirmed its commitment to compliance and transparency. “We are a law-abiding organization fully compliant with all laws,” said a spokesperson.

The fallout has also reignited political controversy in India. The opposition Indian National Congress party has renewed its demand for a parliamentary investigation into Adani’s businesses, citing the group’s close ties to Prime Minister Narendra Modi.

In a parallel civil case, the U.S. Securities and Exchange Commission (SEC) accused Adani and others of misleading investors. The SEC claims Adani Green Energy Ltd. raised $175 million from U.S. investors based on false claims related to the solar energy contracts. Cyril Cabanes, an executive at Azure Power Global, was also named in the SEC’s charges.

Previous Allegations

The allegations have also led Adani Green to suspend plans for a $600 million bond offering, the company said in a letter to Indian stock exchanges.

This latest scandal comes as the Adani Group is still recovering from accusations made by U.S. short-seller Hindenburg Research in early 2023. Hindenburg alleged “brazen stock manipulation and accounting fraud,” which led to an $80 billion drop in Adani’s net worth. At the time, the group dismissed the claims, calling the report a “pack of lies.”

Despite his legal troubles, Gautam Adani remains one of Asia’s wealthiest individuals, with a net worth exceeding $85 billion, according to Bloomberg’s Billionaires Index. Starting his career in diamond trading, Adani built a sprawling empire that includes businesses in ports, energy, and media.