Washington, 21 November, 2024: US prosecutors have charged billionaire Gautam Adani and his nephew Sagar Adani, along with other defendants, in connection with an alleged multi-year scheme to pay over $250 million in bribes to Indian officials. The goal of the scheme was to secure favorable terms for solar power contracts potentially worth billions of dollars in profit, according to court documents unsealed Thursday.
The charges, filed by the US Attorney’s Office for the Eastern District of New York, accuse the Adani family and associates of orchestrating the bribery scheme between 2020 and 2024. The scheme was allegedly concealed from US banks and investors from whom the Adani Group raised billions for the solar energy projects. The US law permits the prosecution of foreign corruption cases if they are linked to American investors or markets.
In addition to Gautam Adani, the chairman of the Adani Group, and Sagar Adani, executive director of Adani Green Energy Ltd, the indictment charges former Adani Group CEO Vneet Jaain. The Adanis and Jaain face charges of securities fraud, conspiracy to commit securities fraud, and wire fraud. Sagar Adani and Jaain are also accused of violating federal laws. The US Securities and Exchange Commission (SEC) has filed a civil case related to the allegations.
In a statement, Adani Group denied the charges, calling the allegations “baseless” and asserting that the conglomerate is fully compliant with all laws. “The Adani Group has always upheld the highest standards of governance and regulatory compliance,” said a spokesperson. They also noted that the charges are allegations, and the defendants are presumed innocent unless proven guilty.
US Attorney Breon Peace said the defendants “orchestrated an elaborate scheme to bribe Indian government officials” to secure contracts worth billions. The charges also involve three former employees of the Canadian pension fund CDPQ, which invests in Adani companies, who are accused of obstructing the investigation by deleting emails and providing false information to US authorities.
This latest legal action comes on the heels of the Adani Group’s recovery from a major market blow earlier in 2023, when Hindenburg Research accused the group of stock manipulation and accounting fraud, causing a $150 billion drop in market value. Adani Group has denied those allegations.
The charges also implicate officials at Azure Power Global, including Ranjit Gupta and Rupesh Agarwal, who allegedly played a role in facilitating the bribes. Azure Power, a company with shares listed on the New York Stock Exchange, reportedly raised over $175 million from US investors during the time of the alleged scheme.
The indictment, which includes criminal charges related to the Foreign Corrupt Practices Act, could further complicate the legal and financial challenges facing the Adani Group, which operates in sectors ranging from ports to energy and mining.
