Indian billionaire Gautam Adani, chairman of the Adani Group, has been indicted in the United States for allegedly orchestrating a $265 million bribery scheme. The U.S. Securities and Exchange Commission (SEC) and federal prosecutors accuse Adani and key associates, including his nephew Sagar Adani, of paying Indian officials to secure lucrative energy contracts. The scheme reportedly enabled Adani Green Energy and Azure Power to secure deals valued at billions, with deceptive claims about anti-corruption practices used to attract American investors. These charges, filed under the Foreign Corrupt Practices Act, represent a severe legal and reputational crisis for the business tycoon and his conglomerate.
Prosecutors claim Adani's enterprise falsified securities and bribery compliance disclosures to raise $175 million from U.S. investors as part of a $750 million bond offering in 2021. In addition to bribing officials, the complaint alleges that Cyril Cabanes, a former Azure Power board member, played a role in facilitating the fraud. The fallout from these allegations has sent shockwaves through the Adani Group's financial standing, with stock prices for several group companies, including Adani Green Energy and Adani Enterprises, plummeting by nearly 20% in the aftermath of the announcement.
This latest controversy compounds existing scrutiny over Adani's business practices, exacerbated by past accusations of fraud and cronyism. The opposition in India has leveraged these allegations to criticize Prime Minister Narendra Modi, citing Adani's alleged close ties to the government. U.S. prosecutors have issued warrants for Adani and other defendants, signaling an intention to involve international law enforcement. Amid the escalating crisis, Adani Group has yet to issue a statement, leaving investors and stakeholders in suspense over the conglomerate's next steps.
