Gautam Adani, the billionaire chairman of the Adani Group and one of the world’s wealthiest individuals, has been indicted in New York for his alleged involvement in a $265 million bribery scheme, U.S. prosecutors revealed.
Authorities claim that Adani, his nephew Sagar Adani, and six other defendants conspired to pay bribes to Indian government officials to secure contracts for India’s largest solar power plant, expected to generate $2 billion in profits over 20 years. Arrest warrants for Gautam and Sagar Adani have been issued, with plans to forward them to international law enforcement.
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Prosecutors also allege that Adani, Sagar, and former Adani Green Energy CEO Vneet Jaain, raised over $3 billion through loans and bonds while concealing their corruption from lenders and investors. They face charges of securities fraud, conspiracy, and wire fraud. Additionally, the U.S. Securities and Exchange Commission has filed a civil case against the Adanis.
The fallout was swift, with shares of Adani Group companies dropping 10-20% and Adani Green Energy canceling a $600 million bond issuance. Adani dollar bonds also fell by 3-5%, marking the largest drop since a short-seller attack on the group in February 2023.
Court documents reveal Adani was referred to by code names such as “Numero Uno” and “The Big Man,” while Sagar allegedly monitored bribe details via his cellphone. Five other individuals face charges for violating U.S. anti-bribery laws and obstructing justice.
Shares of GQG Partners, a significant Adani Group investor, fell 20%, its largest single-day drop since its listing. The Australian investment firm, holding stakes in several Adani companies, stated it is closely monitoring the situation.
Gautam Adani, who is reportedly in India, is among the rare billionaires to face criminal charges in the U.S. Despite the scandal, Forbes estimates his net worth at $69.8 billion.
