Indian billionaire Gautam Adani, one of Asia's richest men, has been indicted in New York alongside seven other executives for alleged involvement in a multi-billion-dollar fraud and bribery scheme.
The charges, announced Wednesday by US prosecutors, accuse Adani and his associates of orchestrating a $250 million bribery plan to secure lucrative solar energy contracts in India between 2020 and 2024.
Adani Group Shares Plunge Amid DOJ Bribery Accusations and Investor Fallout
According to the Department of Justice (DOJ), the scheme aimed to secure solar energy supply deals projected to generate over $2 billion in profits over two decades.
According to CNN, the indictment alleges that Adani personally met with Indian officials to advance the plan, which was supported by detailed evidence, including phone records, documents, and spreadsheets outlining bribe payments.
The accusations come at a turbulent time for the Adani Group, which has been grappling with reputational damage since a 2023 report by US-based Hindenburg Research accused the conglomerate of stock manipulation and accounting fraud. That report caused Adani's companies to lose over $60 billion in market value.
Shares of Adani Group companies took another hit following the indictment, with some plunging as much as 20% on Thursday, wiping out nearly $30 billion in market capitalization. Although stocks recovered slightly the next day, the group remains under intense scrutiny from global investors.
The DOJ and the US Securities and Exchange Commission (SEC) also accused Adani Group executives of concealing their alleged bribery activities from US investors to secure financing. These actions reportedly misled investors into funding projects built on corrupt practices.
Adani Group Denies Fraud Allegations as Political Tensions Rise in India
In a parallel development, the SEC charged Adani Green Energy executives and an official from Azure Power Global for their role in securing contracts through bribery. These companies raised significant capital from US investors under false pretenses, the SEC alleged.
The Adani Group has denied all charges, calling them baseless. The company maintains that it adheres to high standards of transparency and compliance, assuring stakeholders that it will defend itself against the allegations, AP News said.
The case has sparked political tensions in India, where Adani is seen as closely tied to Prime Minister Narendra Modi's administration.
The opposition party has demanded an investigation into the government's links with Adani.
As the legal battle unfolds, Adani's future and his group's expansion plans, including renewable energy ambitions, face uncertainty. Analysts warn that while the indictment is unlikely to destabilize India's economy, it raises concerns about corporate governance and transparency in the country.
