Indian billionaire Gautam Adani and seven associates have been indicted in New York on charges linked to a large-scale bribery and fraud scheme. The U.S. Department of Justice revealed on Wednesday that Adani and his co-defendants allegedly paid over $250 million in bribes to Indian government officials to secure solar energy contracts valued at more than $2 billion in profits. The charges against Adani, chairman of the Adani Group, include securities fraud conspiracy, wire fraud conspiracy, and securities fraud.
The Justice Department alleges that Adani and his associates misled investors about their compliance with anti-bribery laws while raising billions of dollars in capital to fund energy projects. Deputy Assistant Attorney General Lisa Miller stated, "These bribes were intended to manipulate the system, deceive investors and banks, and obstruct justice." Evidence cited in the indictment includes phone records, photographs detailing bribes, and presentations outlining payment strategies.
The alleged misconduct primarily occurred in India, but the indictment was filed in Brooklyn because of actions tied to the Eastern District of New York. These included false and misleading statements made to secure capital from U.S. and international investors, including through bond issuances. The DOJ has accused the defendants of concealing these bribes to obtain financing for the contracts secured through corruption.
Among the other defendants are executives from Azure Power Global and three former employees of Canadian investment institution Caisse de Depot et Placement du Quebec. These individuals face additional charges, including conspiracy to obstruct U.S. investigations into the bribery scheme. The Securities and Exchange Commission has also filed civil complaints against Gautam and Sagar Adani, as well as Azure Power executive Cyril Cabanes. The SEC alleges that Adani Green Energy raised more than $175 million from U.S. investors during the scheme.
Gautam Adani, who is reportedly worth $85 billion and ranks as Asia's second-richest individual, has been a controversial figure. Earlier this year, short-seller Hindenburg Research accused the Adani Group of engaging in "a brazen stock manipulation and accounting fraud scheme." This report caused Adani's wealth to plummet by more than $80 billion. The Adani Group denied the allegations, calling them baseless and releasing a 413-page rebuttal.
The DOJ's indictment further alleges that Adani personally met with Indian government officials to advance the bribery scheme. Prosecutors claim the group used elaborate methods to conceal their activities, including detailed records of bribe payments and extensive discussions on how to execute the fraud without detection. While none of the defendants are currently in U.S. custody, the case highlights the international ramifications of corporate corruption.
The charges against Adani and his associates have implications beyond financial fraud. Critics have long scrutinized Adani's close ties to Indian Prime Minister Narendra Modi. Adani, who began his career in diamond trading before establishing the Adani Group in 1988, has expanded his business empire into ports, power, renewable energy, and media.
The SEC emphasized that such cases underscore the risks posed to global markets by corruption. "Gautam and Sagar Adani orchestrated a bribery scheme that involved paying or promising to pay the equivalent of hundreds of millions of dollars in bribes to Indian government officials," the agency stated. Adani Green Energy, a subsidiary of the Adani Group, and Azure Power allegedly benefited directly from inflated contracts awarded as part of the bribery scheme.
