Indian billionaire Gautam Adani has been charged with fraud in the US, accused of orchestrating a $250 million bribery scheme to secure contracts for his renewable energy company. The charges, filed on Wednesday in New York, are a significant blow to Adani, who is one of India’s wealthiest individuals with a business empire spanning ports, airports, and renewable energy.
According to prosecutors, Adani and senior executives allegedly made payments to Indian officials in exchange for contracts expected to generate over $2 billion in profits over the next 20 years. The US Department of Justice (DOJ) accuses the Adani Group of concealing the bribery scheme while raising capital in the US.
Financial Impact on Adani Group
In the wake of the charges, shares of Adani Group companies plummeted by more than 10%, resulting in a loss of around $30 billion in market capitalization. Adani Green Energy, the company at the center of the allegations, announced it would halt a planned $600 million bond offering.
The Adani Group has been under scrutiny in the US since 2023, when a report from a high-profile firm accused it of fraud. Adani denied these allegations, but the claims led to a major market sell-off. The ongoing bribery probe, which has been circulating for months, has added to the group’s challenges.
Allegations of Obstruction and Misleading Statements
The US investigation into the Adani Group began in 2022, but prosecutors claim the inquiry was obstructed. The DOJ alleges that executives raised $3 billion in loans and bonds, including from US-based firms, by making false and misleading statements about the company’s anti-bribery policies and the ongoing bribery investigation.
US Attorney Breon Peace stated that the defendants orchestrated an elaborate scheme to bribe Indian officials and misrepresented the facts to international investors seeking to raise capital. “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,” Peace added.
Adani’s Personal Role and Political Ties
Prosecutors allege that Adani personally met with government officials to advance the bribery scheme. The charges are seen as a significant setback for Adani, who has spent nearly two years attempting to rebuild his image following earlier fraud allegations from the Hindenburg Group.
Michael Kugelman, director of the South Asia Institute at the Wilson Center, called the charges a “body blow” to Adani. He noted that while Adani had been trying to counter earlier fraud allegations, the new charges from the US Department of Justice may be harder to dismiss.
Adani, a close ally of Indian Prime Minister Narendra Modi, has long faced allegations from opposition politicians who claim he has benefited from his political connections, which he denies.
Political Context and Future Developments
The charges come just weeks after Donald Trump’s election to the White House. Trump has pledged to overhaul the US Justice Department, and Adani recently congratulated Trump on his win, promising to invest $10 billion in the US. However, with the US Justice Department pressing forward with its investigation, it remains to be seen how Adani will navigate these legal challenges.
