U.S. federal prosecutors have indicted Gautam S. Adani, chairman of India’s Adani Group, and seven associates on charges of an international bribery and fraud scheme to secure multibillion-dollar solar energy contracts in India. The allegations, unsealed in a Brooklyn federal court, accuse the defendants of orchestrating a $250 million bribery plan involving Indian government officials to win contracts projected to generate over $2 billion in profits over 20 years.
The indictment outlines a complex web of corruption, including personal meetings between Gautam Adani and Indian government officials. Sagar R. Adani, Gautam Adani's nephew, and Vneet S. Jaain, the former CEO of Adani Green Energy, are accused of documenting and managing bribery-related details through electronic communications and presentations. Other defendants include former Azure Power Global Ltd. executives Ranjit Gupta and Rupesh Agarwal and Canadian institutional investor employees Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra.
Prosecutors allege the Adani Group executives misled U.S. investors and international financial institutions to raise over $3 billion in financing for contracts obtained through corruption. False statements about anti-corruption practices and financial stability were key to obtaining these funds.
The Adani Group, one of India’s largest conglomerates, has faced increased scrutiny over its governance practices. In January 2023, Hindenburg Research accused the group of stock manipulation and accounting fraud. While the company denied those claims, the controversy wiped out billions in market capitalization and raised questions about its transparency. These fresh bribery allegations deepen the group’s reputational challenges and could deter future investments, particularly in renewable energy—a sector central to India’s economic and environmental goals.
U.S. prosecutors emphasized their commitment to combating international corruption. “This indictment alleges schemes to pay over $250 million in bribes to Indian government officials, to lie to investors and banks to raise billions of dollars, and to obstruct justice,” stated Deputy Assistant Attorney General Lisa H. Miller. The case underscores the reach of the Foreign Corrupt Practices Act (FCPA), which holds companies accountable for bribery involving foreign officials.
The charges come when Adani Group closely aligns with Indian Prime Minister Narendra Modi’s economic policies. Critics have pointed to the group’s rapid rise and favorable government policies indicative of broader systemic risks. These allegations could have political ramifications in India, as opposition parties will likely leverage the case to question governance standards under Modi's administration.
Often hailed as a cornerstone of sustainable development, the renewable energy sector faces reputational damage when tied to corruption. Experts suggest the case could hinder global investment in Indian renewable energy initiatives requiring substantial international funding.
The Adani Group has yet to issue a formal statement regarding the indictment. Foreign law enforcement agencies are expected to issue Gautam and Sagar Adani arrest warrants. As the case unfolds, the legal, political, and financial impacts will likely resonate across borders.
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