Gautam Adani, the billionaire behind the sprawling Adani Group, faces serious accusations as US prosecutors have charged him with participating in an alleged bribery scheme exceeding US$265 million. The charges, unsealed on 20 November 2023, suggest he orchestrated plans to secure lucrative solar energy contracts in India.
The Allegations
The indictment from US Attorney Breon Peace reveals that Adani and others allegedly promised bribes to Indian officials to obtain power supply contracts that could yield substantial profits. Alongside his nephew Sagar R. Adani and former CEO Vneet S. Jaain, Adani is accused of using deception to raise more than US$3 billion in loans and securities by concealing their alleged corrupt activities from investors.
- Adani faces charges of securities fraud and conspiracy.
- Prosecutors allege a broader scheme involving obstruction of justice.
- The Securities and Exchange Commission has filed a separate civil lawsuit.
A Turbulent Reputation
Born into a middle-class family in Gujarat, India, Adani’s rise to wealth and power has been under intense scrutiny. His conglomerate spans multiple sectors, including coal, airports, and renewable energy, positioning him as a pivotal player in India’s economy. However, this status has been marred by prior allegations of corporate fraud and accusations of close ties to political figures, specifically Prime Minister Narendra Modi.
In recent months, Adani has faced a significant market backlash, losing US$150 billion in market value following a controversial report from short-seller Hindenburg Research. The report claimed the company engaged in extensive stock manipulation and outlined years of alleged corrupt practices.
Public and Legal Repercussions
The latest charges against Adani have thrust him back into the spotlight, causing share prices of the Adani Group to plunge once again. Several bond sales have been cancelled as investors react to the unfolding scandal.
While Adani’s group has publicly refuted the allegations, describing them as baseless, it remains to be seen how this will impact his empire and connections within the Indian political landscape. The unfolding situation not only impacts Adani personally but also raises questions about governance and corporate ethics in India.