Federal prosecutors in New York have charged Indian billionaire Gautam Adani with an alleged multi-year plot to bribe Indian authorities in exchange for favorable terms on solar power contracts that are expected to generate over $2 billion in profit.
Along with seven other people, including executives of Adani energy subsidiaries and former employees of a Canadian pension fund, the 62-year-old tycoon, who chairs the multinational conglomerate Adani Group and has been an outspoken supporter of Prime Minister Narendra Modi, was indicted in Brooklyn on charges of securities fraud.Among the defendants is his nephew Sagar Adani, who serves as executive director of a renewable energy company that Gautam Adani created.
Prosecutors in the United States claimed that the conspiracy, which was reportedly hidden from US banks and investors from whom they obtained billions of dollars, involved paying over $250 million in bribes to members of the Indian government between 2020 and 2024.
They asserted that Gautam Adani "advanced" the plan by meeting with an Indian official.
Three former workers of the sizable Canadian pension fund CDPQ were also charged by the US attorney's office in Brooklyn in relation to the alleged conspiracy. They were accused of deleting emails and agreeing to give the US government false information in order to thwart an inquiry into the bribes. CDPQ is a shareholder in Adani enterprises and makes investments in infrastructure projects.
The indictments pose a danger to Adani Group's reputation, which has been attempting to recover from allegations of stock market manipulation and accounting fraud brought by US short seller Hindenburg Research last year.
US deputy assistant attorney general Lisa Miller stated, "This indictment alleges schemes to pay over $250 million in bribes to Indian government officials." "Senior executives and directors are accused of committing these offenses in order to use fraud and corruption to secure and fund large state energy supply contracts at the expense of US investors."
The defendants, according to the prosecution, "extensively documented their corrupt efforts" on excel spreadsheets, PowerPoint presentations, and cell phones, "summarizing various options for paying and concealing bribe payments."
The US Securities and Exchange Commission charged in a related civil case that the purported payments were made to "secure [the Indian government's] commitment to purchase energy at above-market rates that would benefit Adani Green and Azure Power," two Indian renewable energy firms.
While the project was still in progress, Adani Green, which is constructing one of the biggest solar plants in the world at Khavda in Gujarat, India's western state, raised over $175 million from US investors as part of a $750 million corporate bond, according to US regulators.
According to Sanjay Wadhwa, acting director at the SEC's enforcement division, Gautam Adani and Sagar Adani allegedly "induced US investors to buy Adani Green bonds through an offering process that misrepresented not only that Adani Green had a robust anti-bribery compliance program but also that the company's senior management had not and would not pay or promise to pay bribes."
Sagar Adani reportedly discussed "incentives," or bribes, with Azure executives and others in order to "motivate" state authorities to sign contracts with the Indian government's branch in charge of carrying out renewable energy initiatives, according to the regulator's complaint.
Requests for comment were not immediately answered by Adani or Azure.
"CDPQ is aware of charges filed in the US against certain former employees," the company said in a statement. All of those workers were let off in 2023, and CDPQ is assisting US law enforcement. We are unable to comment at this time due to the ongoing proceedings.
The founder of the Indian corporation has transformed Adani into one of the country's most powerful industrial conglomerates over the last 20 years by branching out beyond its primary ports and trading operations into coal, mining, airports, and renewable energy.
In addition to India, it has constructed or submitted bids for port, power, and other infrastructure projects in Bangladesh, Sri Lanka, and Israel, where it runs the Haifa port.
Adani said his company was "committed to leveraging its global expertise" and would invest $10 billion in American energy security and infrastructure projects as part of the partnership between India and the US, with the goal of creating up to 15,000 jobs, in a post on X congratulating Donald Trump on his victory in the US election earlier this month.
Adani's commercial growth, initially in Gujarat and later nationally, has paralleled the Indian government's push to use private sector resources and experience to repair underdeveloped transportation and other facilities, which has intensified during Modi's ten years in office.
In 2022, Adani briefly surpassed rival billionaire Mukesh Ambani to become the richest man in Asia as shares of his listed companies increased.
Rahul Gandhi, the leader of India's opposition party following this year's general election, of the Indian National Congress party, demanded an investigation into the Hindenburg claims and questioned Adani's track record of winning government contracts and his close relationships with Gujarati Prime Minister Modi.
The Adani Group has consistently denied any wrongdoing and rejected the Hindenburg report as a "attack on India." Since then, the share prices of his enterprises have increased.
The Adani Group has consistently denied any wrongdoing and rejected the Hindenburg report as a "attack on India." Since then, the share prices of his enterprises have increased.
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