The Allegations Unveiled
US charges Gautam Adani in alleged $265 million bribery, fraud case, marking a significant turn of events for the industrialist. On Wednesday, the United States Attorney’s office for the Eastern District announced the indictment of Gautam Adani in New York for his alleged involvement in a multibillion-dollar bribery and fraud scheme related to his solar projects in India. This development has sent shockwaves through the business world, highlighting the gravity of the accusations.
Arrest Warrants and Bribery Details
A judge has issued arrest warrants for Gautam Adani, the founder of the Adani Group, and his nephew, Sagar Adani. According to court records cited by Reuters, the prosecutor plans to hand these warrants to “foreign law enforcement.” The indictment alleges that Gautam Adani and seven others, including Sagar Adani, agreed to pay over $265 million in bribes to Indian government officials between 2020 and 2024 to secure contracts expected to yield a profit of $2 billion over 20 years.
Fraud and Investor Deception
The US Attorney’s office stated that Gautam Adani and other defendants defrauded investors by raising capital based on false statements about bribery and corruption. They allegedly attempted to conceal the bribery conspiracy by obstructing the government’s investigation. The other individuals named in the indictment include Vneet S Jaain, CEO of Adani Green Energy, and several others associated with Azure Power Global and a Canadian institutional investor.
Financial Misrepresentation
The indictment further claims that Gautam Adani, Sagar Adani, and Jaain raised over $3 billion in loans and bonds by hiding their corruption from lenders and investors. They allegedly misrepresented the Indian Energy Company’s anti-bribery and corruption practices to secure financing, including funds for solar energy supply contracts obtained through bribery. The funds were raised through false and misleading statements via syndicate loans and Rule 144A bond offerings.
Obstruction of Justice
Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, and Rupesh Agarwal are charged with conspiracy to obstruct justice. They allegedly agreed to delete electronic materials related to the fraud and withheld material information from another investigation. The investigation was conducted by the FBI, the US Securities and Commodities Fraud, and the UK-based International Corruption Units.
Market Impact and Political Reactions
Following the US Attorney’s office statement, Adani Green Energy announced it would not proceed with plans to raise $600 million in US dollar-denominated bonds. Shares of the Adani Group plunged as markets opened on Thursday, with Adani Green Energy and Adani Enterprises Limited experiencing significant drops. The Congress party in India stated that the charges vindicated their demand for a Joint Parliamentary Committee investigation into the “Modani scams.”
