New York, NY – Gautam Adani, the billionaire chairman of the Adani Group, was indicted on Wednesday by US prosecutors for his role in a massive bribery and fraud scheme linked to solar energy contracts in India. Adani, along with his nephew Sagar Adani and six other individuals, is accused of paying $265 million in bribes to Indian government officials to secure lucrative solar energy supply contracts.
Alleged Bribery Scheme
The bribes were reportedly aimed at securing contracts that were expected to generate $2 billion in profits over the next 20 years. These deals were part of an ambitious project to establish India’s largest solar power plant. The indictment reveals that Adani and his co-conspirators used code names, including “Numero uno” for Gautam and “the big man,” while Sagar Adani allegedly tracked bribe details via his cellphone.
Fraud Allegations
In addition to the bribery charges, prosecutors claim that Gautam Adani, Sagar, and Vneet Jaain, the MD and CEO of Adani Green Energy, concealed these corrupt practices from lenders and investors. As a result, the Adanis are accused of fraudulently raising over $3 billion through loans and bonds for their company while hiding the corruption. Jaain is facing charges of conspiracy related to securities and wire fraud.
Additional Charges
Five other individuals in the case have been charged with conspiring to violate the US Foreign Corrupt Practices Act (FCPA), while four have been charged with obstruction of justice. Among them are Ranjit Gupta and Rupesh Agarwal, former executives at Azure Power Global, and Cyril Cabanes, a director at the firm.
Legal Developments
Court records show that arrest warrants have been issued for both Gautam and Sagar Adani. Prosecutors plan to work with foreign law enforcement to execute these warrants. Furthermore, the US Securities and Exchange Commission (SEC) has filed related civil charges against the Adanis and Cabanes.
The indictment came just hours after Adani Group raised $600 million from the sale of 20-year “green” bonds. However, following the charges, the Adani Group announced it would cancel the bond sale.
