U.S. Charges Indian Billionaire Gautam Adani With $250M Bribery & Fraud In Solar Supply Contracts

Indian billionaire Gautam Adani, the chairman of the Adani Group, has been charged in the United States with fraud and bribery.

According to prosecutors in New York, Adani and senior executives at his renewable energy company coordinated a $250 million bribery scheme between 2020 and 2024 to secure solar energy contracts, gaining $2 billion in profits.

The U.S. Attorney’s Office in Brooklyn revealed that Adani, his nephew Sagar Adani, and Adani Green Energy CEO Vneet S. Jaain paid off Indian government officials to win an eight-gigawatt solar project worth $6 billion. This project, labelled the “largest solar development bid ever awarded,” doubled Adani Green Energy’s portfolio overnight.

Prosecutors say Adani Green Energy bribed officials to secure overpriced power purchase agreements despite the project’s lack of commercial competitiveness. U.S. authorities found extensive evidence from executives’ cell phones, including presentations and spreadsheets detailing bribes.

The company misled stakeholders about anti-bribery practices and kept the scheme a secret to raise $175 million from U.S. investors in 2021. Authorities claim the company secured $3 billion in loans and bonds on false pretenses during the bribery period.

Adani Group dismissed the charges as baseless, adding that they would pursue all legal remedies. However, the scandal caused a sharp 10% drop in its shares on Thursday, wiping $20 billion off its market value. Adani Green Energy, the company at the center of the allegations, has since shelved a $600 million bond offering.

This is not the first controversy for the Adani Group. In 2011, the conglomerate was accused of bribing officials in Karnataka to cover up the illegal export of iron ore.

The group’s ties to Indian Prime Minister Narendra Modi have drawn criticism, with opposition leader Rahul Gandhi demanding Adani’s arrest after the new charges.

Analysts predict major political consequences in India, especially given Adani’s longstanding association with the government.

Moody’s Ratings described the indictment as a “credit negative” for Adani Group, focusing on its governance and liquidity risks. U.S.-based investment firm GQG Partners, which has invested $10 billion in the conglomerate, is closely monitoring the case.

Michael Kugelman of the Wilson Center called the charges a “serious blow” to Adani’s efforts to rebuild his reputation after earlier fraud accusations by Hindenburg Research in 2023.

U.S. officials reiterated their commitment to protect financial markets from corruption, with Assistant FBI Director James E. Dennehy accusing Adani and his executives of deceiving investors.

References: Reuters, BBC

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