Billionaire Gautam Adani faces US legal action over alleged $265 Million bribery scandal
New Delhi (The Uttam Hindu): Gautam Adani, the billionaire chairman of the Adani Group, one of India's largest conglomerates, has been indicted in New York on charges related to an alleged multibillion-dollar bribery and fraud scheme, according to US prosecutors on Wednesday. Prosecutors claim that Adani, along with seven other defendants, including his nephew Sagar Adani, conspired to pay approximately $265 million in bribes to Indian government officials in exchange for lucrative contracts, potentially yielding $2 billion in profits over 20 years. The scheme also involved developing India’s largest solar power plant. In addition, the Adanis and former Adani Green Energy CEO Vneet Jaain are accused of raising over $3 billion in loans and bonds by concealing their corrupt activities from investors and lenders.
The indictment reveals that some of the conspirators referred to Gautam Adani by code names like "Numero uno" and "the big man," while Sagar Adani allegedly tracked the bribes using his cellphone. Adani Group did not respond immediately to requests for comment, nor did India’s embassy in Washington. The lawyers for the accused have not been publicly identified yet.
Gautam Adani, Sagar Adani, and Jaain face charges of securities fraud, securities fraud conspiracy, and wire fraud conspiracy, with the Adanis also named in a U.S. Securities and Exchange Commission (SEC) civil case. Five other defendants are charged with violating the U.S. Foreign Corrupt Practices Act, while four face charges of obstructing justice. None of the accused are currently in custody, with Gautam Adani believed to be in India.
The 62-year-old Adani, whose wealth is estimated at $69.8 billion by Forbes, is the 22nd richest person in the world and the second richest in India, after Mukesh Ambani. Adani founded the Adani Group in 1988 as a commodities trading firm, building it into a vast empire spanning airports, shipping ports, power generation, energy transmission, and mining. The charges come just hours after Adani raised $600 million by selling 20-year "green" bonds and nearly two years after U.S. short-seller Hindenburg Research accused the Adani Group of misusing offshore tax havens, a claim the company denied. Hindenburg’s 2023 report led to a massive $150 billion drop in Adani Group stock prices.
Among those criminally charged on Wednesday are Ranjit Gupta and Rupesh Agarwal, former CEO and former chief strategy officer of Azure Power Global, who allegedly paid some of the bribes. Additional defendants include individuals connected to Caisse de Depot et Placement du Quebec, a Canadian institutional investor, including Cyril Cabanes, a dual French-Australian citizen.
A judge has issued arrest warrants for Gautam Adani and Sagar Adani, and prosecutors plan to work with foreign law enforcement to execute the warrants.
This development follows Adani's recent announcement of a planned $10 billion investment in U.S. energy security and infrastructure projects, which is expected to create up to 15,000 jobs. Prime Minister Narendra Modi, also from Gujarat, has faced accusations from political rivals of shielding Adani and his businesses, allegations he has dismissed as "lies and abuses."
