Gautam Adani, executives indicted in US over $250M bribery scheme

NRI PULSE STAFF REPORT

Washington, DC, November 21, 2024: Indian billionaire Gautam Adani, chairman of the Adani Group, and seven others were indicted in New York on charges of bribery and fraud, according to federal authorities. The scheme allegedly involved $250 million in bribes to Indian officials to secure solar energy contracts, yielding over $2 billion in profits.

Adani, along with Adani Green Energy executives Sagar Adani and Vneet Jaain, is accused of misleading investors about the company’s compliance with anti-corruption laws while raising over $3 billion in capital. The charges include securities fraud conspiracy and wire fraud conspiracy.

In addition, Gautam S. Adani, Sagar R. Adani and Vneet S. Jaain are accused of causing the Indian Energy Company to make false statements in their consolidated financial statements and to the market and investors regarding the bribery scheme.

The indictment also names former Azure Power Global executives Ranjit Gupta and Rupesh Agarwal, and ex-employees of Canadian investment firm CDPQ: Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra. They are accused of violating the Foreign Corrupt Practices Act and obstructing U.S. investigations.

The SEC has filed civil complaints against Gautam and Sagar Adani and others, alleging the bribery enabled inflated solar energy contracts and raised significant funds from U.S. investors.

Adani, with a net worth of $85 billion, has faced previous allegations of fraud, including a 2023 report by Hindenburg Research, which he denied as baseless. None of the defendants are in U.S. custody.

In response to the charges, the Adani Group strongly denied the allegations. A spokesperson described them as “baseless” and reiterated the presumption of innocence. “The Adani Group has always upheld the highest standards of governance, transparency, and regulatory compliance,” the statement said, adding that all legal avenues would be pursued.

The spokesperson assured stakeholders, partners, and employees of the company’s commitment to abiding by the law across jurisdictions.

Indian political leaders also weighed in. BJP leader Amit Malviya criticized the indictment as an “abuse of jurisdiction,” suggesting it opens the door to reciprocal allegations against U.S. firms operating in India. BJP spokesperson Sambit Patra remarked, “Law will take its course, and the company will defend itself.”

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