US indicts Gautam Adani in $265 million bribery & fraud case

New Delhi, Nov 21: Indian billionaire Gautam Adani, along with seven others, has been charged by US authorities in a $265 million bribery and fraud case involving the Adani Group’s renewable energy projects. The indictment alleges that bribes were paid to Indian officials to secure power supply contracts for Adani Green Energy and Azure Power, enabling them to develop India’s largest solar power project and generate profits of $2 billion over 20 years.

US prosecutors have charged Adani, his nephew Sagar Adani, and former Adani Green Energy CEO Vneet Jaain with securities fraud, conspiracy, and wire fraud. Arrest warrants have been issued, and foreign law enforcement authorities have been notified. The charges also include violations of the Foreign Corrupt Practices Act against five additional defendants linked to the alleged scheme.

The US Securities and Exchange Commission (SEC) has filed a parallel civil case accusing the defendants of misleading investors about anti-corruption measures. The SEC stated that a September 2021 note offering by Adani Green, which raised $750 million, included false claims about its anti-bribery policies.

The Adani Group has denied all allegations, calling them "baseless" and promising to pursue legal recourse. Indian authorities, including SEBI, have yet to comment on the charges.

The accused include:

• Sagar Adani: Nephew of Gautam Adani and executive director of Adani Green, allegedly tracked bribes using his mobile phone.
• Vneet Jaain aka Vineet Jain: Former CEO of Adani Green, accused of securing $3 billion in loans and bonds through fraudulent means.
• Ranjit Gupta: Former CEO of a US-based issuer and its subsidiary, charged with bribery and fraud.
• Rupesh Agarwal: Former consultant, accused of conspiring to violate anti-bribery laws.
• Cyril Cabanes: A dual citizen of Australia and France, served as a non-executive director for Adani subsidiaries.
• Saurabh Agarwal and Deepak Malhotra: Employees of Canadian investment firm Caisse de Dépôt et Placement du Québec, accused of facilitating corrupt practices.

The Adani Group’s market value suffered a $20 billion loss in Thursday’s trade as shares of Adani Green Energy plunged 16%, and several other subsidiaries reported sharp declines. Bonds for Adani Ports and Special Economic Zone also dropped by 3-5 cents.

This marks another major controversy for the Adani Group, following last year’s allegations by Hindenburg Research of stock manipulation and accounting fraud, which the company has consistently denied.

India’s Congress party has renewed calls for a parliamentary investigation into the group’s alleged wrongdoing, while Prime Minister Narendra Modi’s administration faces accusations of favoritism towards Adani. Both Modi and Adani have denied any impropriety.

Adani, ranked as India’s second-richest man with a net worth of $69.8 billion, is among the few billionaires to face criminal charges in the US.