One of the world’s billionaires and head of Adani Group faces a devastating legal battle in the United States after prosecutors accused him of orchestrating a $250 million bribery scheme. The allegations are against the renewable energy arm of his group-Adani Green Energy, which allegedly made payments to Indian government officials from 2020 to 2024.
Those payments led to soft terms on solar power contracts that is expected to generate over $2 billion in profits. US Attorney Breon Peace explained that this scheme has undermined the integrity of financial markets and international business.
The indictment encompasses securities fraud charges, conspiracy to commit securities fraud, and violation of the Foreign Corrupt Practices Act. Adani and his close associates, such as his nephew Sagar Adani and former Adani Green CEO Vneet Jaain, are accused of lying and misleading investors in their pursuit of capital from US investors.
For instance, billions in loans and bonds were raised during the relevant time period, concealing the bribery scheme from financial institutions.
A parallel probe, meanwhile revealed three former employees of the Canadian pension fund CDPQ who had invested in the Adani group have also been implicated of allegedly tampering into the US probe by deleting their emails and giving false information.
US authorities are pressing both criminal charges and civil penalties, including permanent injunctions and officer/director bans against the accused.
This is after a rocky spell for the Adani Group. In January 2023, the conglomerate was accused by Hindenburg Research of “brazen stock manipulation and accounting fraud,” sending its market value crashing. Although the group has denied the allegations and managed to regain some losses since, new bribery claims could further destabilize its operations.
Self-made billionaire Gautam Adani, whose business empire spans ports, energy, and infrastructure, has long been criticized for his close ties to Indian Prime Minister Narendra Modi.
He denies any undue benefits from those connections, but opposition politicians in India have often enough pointed fingers at the relationship. The US charges could impact the reputation of the Adani Group and will have significant implications for its international operations.
