Indian Billionaire Gautam Adani Indicted in New York Over Alleged Fraud Scheme

 

U.S. prosecutors have indicted Indian billionaire Gautam Adani, along with two executives from Adani Green Energy, for allegedly orchestrating a multibillion-dollar fraud scheme between 2020 and 2024.

On Wednesday, November 20, authorities charged Adani, his nephew Sagar Adani, and Vneet Jaain with paying over $250 million in bribes to Indian government officials to secure solar energy contracts expected to yield $2 billion in profits. Additionally, the company is accused of raising more than $3 billion through loans and bonds using fraudulent and misleading information.

The indictment also implicated five others, including two executives from another renewable energy company and three employees of a Canadian institutional investor, for related conspiracy charges.

The Adani Group has dismissed the allegations as baseless. In a statement released on Thursday, the conglomerate asserted, "The allegations made by the U.S. Department of Justice and the SEC against directors of Adani Green are unfounded and strongly denied. All possible legal avenues will be pursued."

The announcement of the charges caused a significant drop in the stock value of Adani Group companies, wiping out approximately $28 billion in market value during Thursday morning trading. Adani Green Energy shares fell by 17%, while other subsidiaries experienced losses exceeding 10%.

Amid the fallout, Adani Green Energy canceled a planned $600 million bond sale. Court records reveal that arrest warrants have been issued for Gautam Adani and Sagar Adani, with plans to transfer the warrants to foreign authorities.

The charges stem from alleged violations of the U.S. Foreign Corrupt Practices Act, an anti-bribery statute. Seven of the eight defendants are Indian citizens based in India, while the eighth, Cyril Cabanes, is a dual French-Australian citizen residing in Singapore.

The U.S. Securities and Exchange Commission (SEC) has filed parallel civil charges against Gautam Adani, Sagar Adani, and Cabanes, identifying the latter as an employee of Azure Power Global, which was connected to the Canadian investor.

According to Forbes, Gautam Adani, with a net worth of $69.8 billion, ranks as the world’s 22nd richest individual and India’s second-richest person. This legal battle marks a significant challenge for the influential businessman and his sprawling conglomerate.