Indian billionaire Gautam Adani indicted over $265 million bribery scheme

New York. Indian billionaire Gautam Adani, one of the world’s richest men, has been indicted in the United States on charges of defrauding investors by covering up an alleged bribery scheme related to his company’s massive solar energy project in India.

The 62-year-old tycoon was charged with securities fraud and conspiracy to commit securities and wire fraud in a federal indictment unsealed Wednesday. The case revolves around a deal involving Adani Green Energy Ltd. and another company to sell 12 gigawatts of solar energy to the Indian government, enough to power millions of homes and businesses.

Prosecutors accuse Adani and his co-defendants of running a dual-front operation: presenting the project as legitimate to attract billions of dollars in investment from Wall Street while planning or paying $265 million in bribes to Indian government officials to secure government contracts and financing.

“This scheme enriched the defendants at the expense of American investors and the integrity of our financial markets,” said U.S. Attorney Breon Peace.

Adani’s nephew, Sagar Adani, an executive at Adani Green Energy, and Vneet Jaain, the company’s former CEO, were also named as co-accused.

The indictment alleges that the defendants falsely represented Adani Green as a company committed to anti-bribery compliance to global investors. Prosecutors say those guarantees helped them secure billions of dollars in financing for the solar project on terms that did not reflect the project’s true risk.

Meanwhile, power distributors in five Indian states have signed power purchase agreements after allegedly promising bribes to government officials in 2021 and 2022.

In a parallel civil lawsuit, the US Securities and Exchange Commission (SEC) accused Adani and his associates of violating US securities laws. The Securities and Exchange Commission (SEC) is seeking monetary fines and other penalties, saying senior Adani Green executives misled investors about the company’s ethical practices.

Shares of the Adani conglomerate fell in India following news of the indictment. Adani and co-defendants have not publicly commented on the allegations, while domestic calls for accountability have intensified.

Criticism also came from Indian opposition leader Jairam Ramesh, who said the indictment was consistent with the history of fraud and impunity under Prime Minister Narendra Modi’s government. Ramesh called for a parliamentary inquiry into Adani’s business dealings.

Adani rose to prominence in the 1990s with its coal ventures and has expanded his empire into various sectors including infrastructure, defense and renewable energy. His company has invested heavily in green energy, aiming to become India’s largest renewable energy player by 2030.

Despite those ambitions, the Adani Group has faced scrutiny, including accusations by Hindenburg Research last year of stock manipulation and accounting fraud – charges the company has denied.

The US indictment adds another layer to the controversy surrounding the billionaire, potentially changing the future of his global business ventures.

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