Indian billionaire Gautam Adani, chairman of the Adani Group and one of the world’s wealthiest individuals, has been indicted in New York on charges of bribery and fraud. U.S. prosecutors allege that Adani and seven other individuals orchestrated a scheme involving over $250 million in bribes to Indian government officials to secure lucrative solar energy contracts projected to yield $2 billion in profits over two decades.
The indictment, announced by the U.S. Department of Justice (DOJ), also accuses the defendants of raising over $3 billion in financing through false and misleading statements to international investors and financial institutions. The alleged violations fall under the Foreign Corrupt Practices Act (FCPA), a U.S. law prohibiting bribery of foreign officials to gain business advantages.
The scheme, reportedly spanning from 2020 to 2024, involved key Adani Group executives, including Adani’s nephew Sagar Adani and Vneet Jaain of Adani Green Energy. The indictment alleges that bribes were used to secure solar energy supply contracts under a facade of transparency, while the corruption was concealed from investors and regulators.
Code names such as “Numero Uno” and “The Big Man” were allegedly used internally to refer to Gautam Adani, highlighting the centralized nature of the conspiracy. Prosecutors accuse the conspirators of obstructing justice by deleting evidence and withholding information during investigations.
Among the other individuals charged are Ranjit Gupta and Rupesh Agarwal, former executives of Azure Power Global, and Cyril Cabanes, a dual French-Australian citizen who worked for a Canadian institutional investor. Arrest warrants for Gautam Adani and Sagar Adani have been issued, and U.S. prosecutors intend to seek assistance from foreign law enforcement.
The charges triggered a sharp decline in Adani Group’s stock prices. Shares of Adani Green Energy plunged by 17%, while other group companies experienced losses exceeding 10%. The indictment also led Adani Green Energy to cancel a planned $600 million bond sale, further exacerbating market instability.
Opposition leader Rahul Gandhi demanded Adani’s immediate arrest, linking the tycoon’s fortunes to his alleged close ties with Prime Minister Narendra Modi. Critics have long accused the Modi government of favoring the Adani Group, an assertion the conglomerate has denied. Gandhi stated, “We demand that Adani be immediately arrested. But we know that won’t happen as Modi is protecting him.”
In response to the allegations, the Adani Group issued a statement dismissing the charges as “baseless” and asserting its commitment to transparency and regulatory compliance. A spokesperson for the conglomerate said, “The Adani Group has always upheld and is steadfastly committed to maintaining the highest standards of governance.”
Sagar Adani, speaking in October, maintained that the group’s projects were obtained through transparent auction processes without political influence. However, these claims are under scrutiny as the indictment suggests otherwise.
The indictment has intensified scrutiny of Adani’s business empire and its relationship with India’s political establishment. The allegations come at a time when the conglomerate is seeking to expand its international presence, including a recent announcement of a $10 billion investment in U.S. energy projects.
The case underscores the risks of governance lapses in major corporations operating in emerging markets and their potential impact on global investors. Deputy Assistant Attorney General Lisa Miller stated, “This indictment alleges schemes to pay over $250 million in bribes, lie to investors, and obstruct justice.”
If convicted, Adani and the other defendants face severe legal and financial penalties. The case is likely to strain Adani Group’s relations with international investors and hinder its global expansion plans.
The Indian government has yet to comment on the matter, while political opponents are using the scandal to target the ruling Bharatiya Janata Party (BJP). The ongoing developments will test the resilience of the Adani Group and its capacity to manage a crisis of this magnitude. This indictment not only questions corporate accountability but also raises broader concerns about governance, transparency, and ethical practices in India’s corporate landscape.