Billionaire Gautam Adani Indicted in US Over $265 million Bribery and Fraud Allegations

New York: Billionaire industrialist and Adani Group chairman Gautam Adani has been charged by U.S. prosecutors for his alleged involvement in a $265 million bribery and fraud scheme related to solar energy contracts. The charges, announced in New York, accuse Adani and seven other individuals, including his nephew Sagar Adani, of violating U.S. anti-bribery laws.

Prosecutors allege that Adani and his co-defendants paid approximately $265 million in bribes to Indian government officials to secure lucrative solar energy contracts projected to generate $2 billion in profits over two decades. The indictment also accuses Adani Group of concealing corrupt activities while raising $3 billion in loans and bonds for Adani Green Energy, misleading investors and lenders.

Code Names and Concealed Activities

According to the indictment, Gautam Adani was referred to as "Numero Uno" and "The Big Man" by some of the conspirators. Sagar Adani reportedly tracked the bribes using his cellphone, highlighting the detailed planning behind the alleged scheme. Prosecutors claim that Vneet Jaain, another senior executive at Adani Green Energy, was also involved in the concealment of fraudulent activities.

Arrest Warrants and Civil Charges

A New York judge has issued arrest warrants for Gautam Adani and Sagar Adani. Prosecutors have indicated plans to hand these warrants to foreign law enforcement agencies. In addition to criminal charges, the U.S. Securities and Exchange Commission (SEC) has filed civil charges against Gautam Adani, Sagar Adani, and Cyril Cabanes, another co-defendant who is a dual French-Australian citizen.

Other Defendants

The case also names Ranjit Gupta and Rupesh Agarwal, former executives of Azure Power Global, among the defendants. Prosecutors allege that the other accused individuals, all Indian citizens except for Cabanes, played significant roles in the fraud.

Context and Past Allegations

The charges come amid heightened scrutiny of Adani Group's operations. In early 2023, U.S.-based short-seller Hindenburg Research accused the conglomerate of improperly using offshore tax havens, a claim the company denied. The report led to a sharp $150 billion decline in Adani Group’s market value.

Recent Developments

Just hours before the charges were announced, Gautam Adani raised $600 million through 20-year "green bonds." Last week, Adani also revealed plans to invest $10 billion in U.S. energy security and infrastructure projects, a move expected to create 15,000 jobs. However, the timeline for this investment remains unclear.

Gautam Adani, 62, is currently worth $69.8 billion, making him the world’s 22nd richest person, according to Forbes. Despite his immense wealth and influence, these charges mark a significant challenge to the reputation of both Adani and his global business empire.

The Adani Group and India’s embassy in Washington have not yet responded to requests for comment on the matter.