Indian billionaire Gautam Adani, chairman of the Adani Group and Asia’s second-richest person, has been indicted in New York for his alleged role in a multi-billion-dollar bribery and fraud scheme. The US Department of Justice announced charges against Adani and seven other top executives, including his nephew Sagar Adani, for orchestrating a plan to bribe Indian government officials to secure lucrative solar energy contracts.
The DOJ revealed that Adani and his associates promised more than $250 million in bribes to Indian officials between 2020 and 2024. These bribes allegedly helped the Adani Group win solar energy supply contracts projected to bring in over $2 billion in profits over 20 years.
The Fraud Scheme Uncovered
According to US prosecutors, the bribery scheme was carefully planned and documented, with evidence including phone messages, photographs of bribery details, and PowerPoint and Excel files tracking the illegal payments. Adani himself is accused of personally meeting with Indian government officials to push the scheme forward.
The DOJ claims the group concealed their actions from US investors to secure funding for projects tied to these bribery-obtained contracts. Deputy Assistant Attorney General Lisa Miller stated that Adani’s actions “lied to investors and banks to raise billions of dollars and obstructed justice.”
SEC Joins the Fight Against Adani
In a parallel investigation, the Securities and Exchange Commission (SEC) charged Gautam Adani, Sagar Adani, and Cyril Cabanes of Azure Power Global with fraud. The SEC alleges that Adani Green Energy Ltd., a part of the Adani Group, raised over $175 million from US investors based on misrepresented financial information tied to these illegal contracts.
This isn’t the first time Adani has been under fire. In January 2023, US short-seller Hindenburg Research accused Adani of “brazen stock manipulation and accounting fraud,” causing his net worth to drop by over $80 billion. Once valued higher than Jeff Bezos, Adani’s wealth now stands at $85.5 billion, according to the Bloomberg Billionaires Index.
A Long Road to the Top Now Under Scrutiny
Adani’s rise to power has been nothing short of extraordinary. Starting in diamond trading, he founded Adani Enterprises in 1988, which grew into a massive conglomerate spanning ports, power, media, and clean energy. Seen as a close ally of Indian Prime Minister Narendra Modi, Adani’s influence and fortune have often been tied to his proximity to political power.
This indictment threatens to shake the foundation of his empire, with US authorities promising to hold him accountable for his alleged actions. Adani Group has not yet commented on the charges.
A Turning Point for the Adani Empire
The charges against Gautam Adani represent a significant escalation in the global crackdown on corruption and corporate fraud. If convicted, Adani and his associates could face severe penalties, potentially reshaping the future of one of India’s largest conglomerates.
What do you think? Will this indictment mark the end of Gautam Adani’s reign as one of Asia’s richest and most powerful men? Share your thoughts below.
