Gautam Adani, India’s second-richest man, has been charged in the U.S. with orchestrating a $265 million bribery scheme to secure power contracts and deceive investors.
Adani Group’s market value plunged $20 billion after the indictment, furthering scrutiny over the billionaire’s business practices.
Arrest warrants have been issued for Adani and others.
Content Highlights
- Main Allegation: Gautam Adani and associates are accused of a $265M bribery scheme targeting Indian officials.
- Key Charges: Securities fraud, bribery, and conspiracy involving U.S. investors.
- Financial Fallout: Adani Group’s stocks and bonds plummet; $20B in market value wiped out.
- Legal Consequences: Arrest warrants issued; extradition process anticipated.
- Political Backlash: Renewed calls for a parliamentary probe into Adani’s ties with Indian officials.
Indian billionaire Gautam Adani, one of the world’s wealthiest individuals, faces a monumental legal battle after being charged by U.S. prosecutors in connection to an alleged $265 million bribery scheme.
The charges plunge the Adani Group, a global conglomerate, into yet another crisis, marking the second significant blow to the company in just two years.
Allegations and Legal Fallout
The U.S. Attorney’s Office for the Eastern District of New York unveiled multiple charges against Adani and seven other defendants.
These include securities fraud, wire fraud conspiracy, and other allegations tied to the misuse of power and influence.
The indictment accuses the Adani Group of bribing Indian officials to secure lucrative power contracts and fund India’s largest solar power project.
According to prosecutors, the alleged scheme involved raising over $3 billion through loans and bonds by concealing corrupt activities from investors and lenders.
Gautam Adani and his nephew, Sagar Adani, are accused of orchestrating these efforts, with Sagar overseeing strategic and financial matters at Adani Green Energy, the firm at the center of the controversy.
In a parallel case, the U.S. Securities and Exchange Commission (SEC) has also filed civil charges, stating, “The Adani Green offering materials included statements about its anti-corruption efforts that were materially false or misleading.”
Financial Turmoil
The fallout has been immediate and severe. Adani Group’s stocks and bonds experienced sharp declines, with Adani Green Energy shares plummeting 16% and the conglomerate losing $20 billion in market value in a single trading session.
The company also withdrew a planned $600 million bond sale amid the growing crisis.
Investors, both in India and abroad, are on edge. GQG Partners, a significant backer of Adani companies, saw its shares drop 20%—the largest single-day decline since its listing.
A History of Scrutiny
This is not the first time Adani’s business empire has faced scrutiny.
In 2023, a report by short-seller Hindenburg Research accused the conglomerate of financial irregularities and misuse of offshore tax havens.
While the company vehemently denied the claims, the ensuing turmoil wiped out billions in market value and raised questions about corporate governance within the Adani Group.
The latest charges add a new dimension to the group’s challenges.
Prosecutors allege that some conspirators referred to Gautam Adani by code names like “Numero Uno” and “The Big Man,” underscoring the central role he is believed to have played.
Political Implications
Prime Minister Narendra Modi’s administration has faced accusations of favoritism toward Adani, given their shared roots in Gujarat.
While both parties deny impropriety, the opposition Congress party has reiterated its calls for a thorough parliamentary investigation into Adani Group’s dealings.
What Lies Ahead?
With arrest warrants issued for Gautam and Sagar Adani, the legal spotlight now shifts to the Indian government, which will need to address extradition requests under its treaty with the U.S.
Legal experts predict the Adani Group will challenge the charges and seek dismissals in court.
Despite his wealth—estimated at $69.8 billion—Gautam Adani’s reputation and empire face an uncertain future as these allegations unfold.
Whether the Adani Group can weather this storm remains to be seen, but the implications for its global investors and India’s economic landscape are undeniable.
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