Gautam Adani, the billionaire chairman of the Indian conglomerate Adani Group and among the world’s wealthiest individuals, has been indicted in New York concerning his involvement in a $265-million bribery scheme, according to U.S. prosecutors.
Authorities allege that Adani and seven other defendants, including his nephew Sagar Adani, conspired to pay $265 million in bribes to Indian government officials for contracts anticipated to generate $2 billion in profits over 20 years, including the development of India’s largest solar power plant.
Prosecutors stated that the Adanis, along with former Adani Green Energy CEO Vneet Jaain, secured over $3 billion in loans and bonds while concealing their corrupt activities from lenders and investors. Since some lenders and investors were based in the U.S., this conduct violates the U.S. Foreign Corrupt Practices Act.
The Adani Group has labeled the allegations as “baseless” and has committed to pursuing “all possible legal recourse.”
A judge has issued arrest warrants for both Gautam and Sagar Adani, and prosecutors intend to present these warrants to foreign law enforcement, according to court documents.
Gautam Adani, Sagar Adani, and Jaain have been charged with securities fraud, conspiracy to commit securities fraud, and conspiracy to commit wire fraud. The Adanis also face charges in a civil case filed by the U.S. Securities and Exchange Commission.
These charges come less than two years after the U.S. short-seller Hindenburg Research accused the Adani Group in February 2023 of misusing tax havens and engaging in stock manipulation, allegations the conglomerate denied.
The immediate impact on the Adani empire was significant, with shares of listed companies within the group dropping between 10% and 20%. Overall, Adani Group companies lost approximately $27 billion in market value, with shares of its flagship Adani Enterprises sinking 23%, marking its steepest one-day decline since the Hindenburg report was published in February the previous year.
On the same day, Adani Green Energy announced the cancellation of its plan to raise $600 million in U.S. dollar-denominated bonds, which had already been priced but were withdrawn following the news.
In the indictment, some conspirators referred to Gautam Adani using code names such as “Numero uno” and “the big man,” while Sagar Adani allegedly used his mobile phone to monitor details related to the bribes.
In total, five other defendants are charged with conspiring to violate the Foreign Corrupt Practices Act, and four face charges for obstructing justice. None of the defendants are currently in custody, with Gautam Adani believed to be in India, a spokesperson for U.S. Attorney Breon Peace in Brooklyn confirmed.
Shares of GQG Partners, an Australian investment firm that is a significant supporter of the Adani Group, fell 20%, marking the largest one-day decrease since its listing three years ago. GQG had previously acquired stakes in Adani companies, including 3.4% in Adani Enterprises and 4.1% in Adani Ports and Special Economic Zone. The firm stated it is closely monitoring the situation.
Gautam Adani, aged 62, has a net worth of $69.8 billion, according to Forbes. He is one of the few billionaires formally accused of criminal misconduct in the United States.
