Gautam Adani Facing Arrest Warrant Over USD 265 Million Bribery Scheme, U.S. Prosecutors Charge
Indian billionaire Gautam Adani, one of the world’s wealthiest individuals, is facing serious legal challenges after U.S. prosecutors issued an arrest warrant in connection with an alleged USD 265 million bribery and fraud scheme. According to Reuters, the charges stem from accusations that Adani and others, including his nephew Sagar Adani, orchestrated a scheme to pay bribes totaling over USD 250 million to Indian officials in exchange for favorable terms on solar power contracts.
Bribery and Securities Fraud Charges
The criminal indictment, filed by the U.S. Department of Justice in a New York court, accuses Adani and seven other individuals of paying bribes to state government officials, including those in Andhra Pradesh, to secure lucrative solar power deals. These contracts were projected to generate more than USD 2 billion in profits over the next two decades.
The charges include bribery and securities fraud, with the U.S. Securities and Exchange Commission (SEC) also bringing a separate case against Adani’s associates. The indictment details how the bribes were allegedly used to influence government decisions related to Adani’s business dealings in the renewable energy sector.
Adani Group’s Denial
In response to the charges, the Adani Group strongly denied the allegations, calling them “baseless” and reaffirming the company’s commitment to maintaining the highest standards of governance and regulatory compliance. A spokesperson for the group emphasized, “The allegations made by the U.S. Department of Justice and the U.S. Securities and Exchange Commission against directors of Adani Green are baseless and denied.” The spokesperson further assured stakeholders that the group adheres to all laws and regulations across its global operations.
Stock Market Impact
The allegations have significantly impacted Adani Group’s stock performance. Following the news, Adani Enterprises and Adani Energy stocks plunged by 20% each. Other companies within the Adani conglomerate, including Adani Green Energy and Adani Total Gas, also saw substantial losses. The downturn in stock prices has raised concerns among investors and analysts alike.
Arrest Warrants and Legal Proceedings
Court records obtained by Reuters reveal that arrest warrants have been issued for both Gautam Adani and his nephew, Sagar Adani, in connection with the alleged scheme. U.S. prosecutors plan to work with foreign law enforcement agencies to serve the warrants and pursue further action against the accused individuals.
As the legal proceedings unfold, the charges have drawn attention to the complex nature of international business dealings and the increasing scrutiny of high-profile figures like Adani. The case marks another significant chapter in the ongoing scrutiny of the Adani Group, which has faced previous allegations of fraud and corporate misconduct, especially following a 2023 report by short-seller Hindenburg Research.
