Gujarat business icon Gautam Adani, the billionaire chair of the Adani Group and one of the world’s richest individuals, has been indicted in New York for his alleged involvement in a multibillion-dollar bribery and fraud scheme. U.S. prosecutors announced the charges on Wednesday, implicating Adani, his nephew Sagar Adani, and other executives.
Bribery Allegations
According to U.S. authorities, Gautam Adani and seven co-defendants allegedly paid or agreed to pay approximately $265 million in bribes to Indian government officials. These payments were reportedly intended to secure lucrative contracts for developing India’s largest solar power plant project, expected to generate $2 billion in profits over 20 years.
The U.S. Securities and Exchange Commission (SEC) accused the Adanis of raising over $3 billion in loans and bonds by concealing their corrupt practices from investors and lenders. The indictment also revealed that Gautam Adani was referred to with code names such as “Numero Uno” and “The Big Man” among conspirators, while Sagar Adani allegedly tracked bribery specifics using his cellphone.
Focus on Renewable Energy Projects
The SEC’s statement highlighted that the bribery scheme was aimed at enabling Adani Green Energy and Azure Power Global to benefit from a massive solar energy project awarded by the Indian government. Gautam and Sagar Adani allegedly induced U.S. investors to purchase Adani Green bonds by misrepresenting the company’s anti-corruption compliance. During a 2021 note offering, Adani Green raised $750 million, including $175 million from U.S. investors, while misleading them about its anti-bribery efforts.
SEC Charges and Statements
Sanjay Wadhwa, Acting Director of the SEC’s Division of Enforcement, criticized the Adanis’ conduct, stating, “Gautam and Sagar Adani misled U.S. investors by portraying a robust anti-bribery compliance program, while actively orchestrating a bribery scheme to secure above-market rates for energy sales.”
Cyril Cabanes, a former executive at Azure Power, was also charged with violating the Foreign Corrupt Practices Act (FCPA). He allegedly authorized bribes to further the scheme while serving as a director of a U.S.-listed company.
Adani Group’s Response Pending
The Adani Group has yet to respond to these allegations. The charges, announced early Thursday in India, are expected to put Adani Group stocks under scrutiny.
The SEC reaffirmed its commitment to holding individuals accountable for securities law violations, emphasizing that no one is above the law, regardless of their corporate standing or influence.
