Indian billionaire Gautam Adani faces fraud charges in the US, accused of masterminding a $265 million bribery scheme to secure lucrative solar energy contracts in India. Prosecutors allege that Adani and other senior executives paid bribes to Indian officials to win contracts worth billions of dollars, generating $2 billion in profits over 20 years.
The Adani Group has denied the allegations, calling them “baseless” and vowing to seek “all possible legal recourse”. However, the charges have already sent shockwaves through the market, with Adani Group firms’ shares plummeting over 10% and the conglomerate losing over $20 billion in market capitalization.
This is not the first time Adani has faced allegations of wrongdoing. In 2023, US short-seller Hindenburg Research accused the Adani Group of decades of “brazen” stock manipulation and accounting fraud. The claims prompted a major market sell-off and an investigation by India’s market regulator, Securities and Exchange Board of India (Sebi).
Key Allegations:
- Bribery Scheme: Adani and executives paid bribes to Indian officials to secure solar energy contracts
- False Statements: Executives made misleading statements about anti-bribery practices and policies to raise $3 billion in loans and bonds
- Obstruction: US investigators found the inquiry obstructed.
Reactions:
- US Attorney Breon Peace: Committed to rooting out corruption and protecting investors
- Michael Kugelman, South Asia Institute director: Charges a “body blow” to Adani’s reputation
- GQG Partners LLC: Monitoring charges, may take “appropriate” actions
- Moody’s Ratings: Indictment a “credit negative” for Adani Group firms.
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