Gautam Adani faces US fraud charges over renewable energy “bribery”
November 22, 2024
Indian billionaire Gautam Adani has been charged with fraud in the US. He is accused of orchestrating a $250m bribery scheme to secure contracts for his renewable energy company, according to a report by the BBC.
The charges, filed in New York, allege that Adani and senior executives concealed the scheme to raise funds in the US.
Prosecutors claim that Adani’s company made payments to Indian officials to win contracts expected to generate $2bn in profits over 20 years.
The Adani Group describes the allegations as “baseless” and has pledged to seek “all possible legal recourse.”
The charges have impacted the group’s market performance, with shares of Adani Enterprises falling 22% and Adani Green Energy halting a $600m bond offering.
The claims triggered a significant market sell-off and an investigation by India’s market regulator, the Securities and Exchange Board of India (SEBI).
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The group has been under scrutiny since 2023, following accusations from Hindenburg Research of stock manipulation and accounting fraud.
Hindenburg also alleged that SEBI’s chief, Madhabi Puri Buch, had connections to offshore funds used by the Adani Group, a claim both parties denied.
The US indictment represents a significant challenge for the Adani Group and involves eight defendants, including Adani’s nephew.
US prosecutors began investigating the company in 2022 and claim that the inquiry was obstructed.
They allege that executives raised $3bn in loans and bonds using false statements about the firm’s anti-bribery practices.
US Attorney Breon Peace stated: “As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and […] lied about the bribery scheme as they sought to raise capital from US and international investors.
“My office is committed to rooting out corruption in the international marketplace and protecting investors from those who seek to enrich themselves at the expense of the integrity of our financial markets.”
In September 2024, Adani Group entered into a partnership with Africa50 to enhance the country’s power transmission infrastructure in Kenya.
Kenya then cancelled a $736m deal signed by Adani Group to construct power lines following the fraud charges levied against the company.
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