Indian billionaire Gautam Adani faces serious criminal charges in the United States, with prosecutors alleging a $250 million bribery scheme designed to secure lucrative contracts for his renewable energy company. The indictment, filed in New York, represents a significant blow to Adani, one of the world’s wealthiest individuals whose business empire spans multiple sectors including ports, airports, and renewable energy.
Prosecutors claim that Adani and senior executives agreed to make payments to Indian government officials to win contracts expected to generate over $2 billion in profits over 20 years. The Adani Group has strongly denied these allegations, stating they are “baseless” and promising to pursue all legal recourse.
The charges have already had immediate financial consequences. Adani Group firms saw their shares drop more than 10% in morning trading, resulting in a market capitalization loss exceeding $20 billion. Adani Green Energy, the company at the center of the allegations, has also suspended a planned $600 million bond offering.
This latest development follows a turbulent period for the Adani Group, which has been under scrutiny since February 2023 when US short-seller Hindenburg Research published a report accusing the company of decades of stock manipulation and accounting fraud. Those earlier allegations prompted a market sell-off and an investigation by India’s Securities and Exchange Board of India (Sebi).
US prosecutors allege that executives raised $3 billion in loans and bonds, including from US firms, using false and misleading statements about the company’s anti-bribery practices. US Attorney Breon Peace stated that the defendants “orchestrated an elaborate scheme to bribe Indian government officials” and sought to raise capital by concealing their actions.
The charges have broader implications beyond financial markets. Adani is a close political ally of Indian Prime Minister Narendra Modi, and opposition leaders are using the opportunity to challenge the relationship between business and political power. Opposition leader Rahul Gandhi has demanded Adani’s arrest and the removal of Sebi’s chief.
Experts like Michael Kugelman from the Wilson Center view these charges as a significant setback for Adani, who has been attempting to rehabilitate his image following the previous fraud allegations. The timing is particularly sensitive, coming shortly after Donald Trump’s election, with Adani having recently congratulated Trump and pledged a $10 billion US investment.
Investors are also responding cautiously. GQG Partners LLC, which has invested nearly $10 billion in the Adani Group, is monitoring the charges and considering potential actions. Moody’s Ratings has labeled the indictment “credit negative,” focusing on the group’s ability to access capital and its governance practices.
The US Justice Department’s move signals a strong stance against international corporate corruption, with prosecutors committed to protecting financial market integrity and rooting out fraudulent practices.
