US Prosecutors Charge Gautam Adani Over Alleged $250 Million Bribery Scheme for Solar Power Contracts
New York, Nov 20: Billionaire Gautam Adani, along with his nephew Sagar and several associates, has been charged by US prosecutors in connection with an alleged bribery scheme to secure favorable solar power contracts. The charges claim that between 2020 and 2024, Adani and his associates paid over USD 250 million in bribes to Indian government officials in exchange for lucrative terms on solar energy contracts, potentially yielding over USD 2 billion in profits.
The US authorities allege that the scheme was hidden from American banks and investors who funded the Adani Group’s solar project. Under US law, foreign corruption charges can be pursued if they are linked to American markets or investors.
Breon Peace, US Attorney for the Eastern District of New York, stated that the defendants orchestrated “an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars.” Along with Gautam Adani, the charges also name his nephew Sagar R. Adani, an executive at Adani Green Energy, and Vneet Jaain, the former CEO of the company’s renewable energy division. All three have been charged with securities fraud, conspiracy to commit securities fraud, and wire fraud.
The case also involves the US Securities and Exchange Commission (SEC), which has filed a civil lawsuit against the Adanis. Additionally, three former employees of CDPQ, a Canadian pension fund that invested in Adani companies, have been charged with obstructing investigations by deleting emails and providing false information to US authorities.
The charges come at a sensitive time for the Adani Group, as the conglomerate had recently rebounded from the aftermath of the Hindenburg Research allegations of stock manipulation and accounting fraud in early 2023. The Hindenburg report had caused a dramatic drop in Adani Group’s market value by USD 150 billion, although most of the losses have since been recovered. The Adani Group has denied all accusations from Hindenburg.
Gautam Adani, who founded the Adani Group in 1988, built a sprawling business empire spanning ports, airports, power generation, and mining. However, the charges could add to the scrutiny of the group, which has now been linked to one of the largest solar energy projects globally.
The investigation also highlights the role of the FBI, which reportedly seized electronic devices from Sagar Adani in March 2023 as part of the probe. The charges implicate other individuals, including executives from Azure Power Global, another company involved in the bribery scheme.
The federal indictment unsealed in Brooklyn accuses the Adani Group and its affiliates of conspiracy to violate the Foreign Corrupt Practices Act, making this a significant case in the ongoing scrutiny of international corruption and financial practices.
