Adani Group Faces Allegations of Fraud and Bribery in the U.S.
The troubles for Indian billionaire Gautam Adani seem far from over as his conglomerate, the Adani Group, is once again under scrutiny—this time for allegations of fraud and bribery tied to solar energy projects. The latest developments have led to a significant plunge in the stock prices of Adani Green Energy Limited, with shares dropping by up to 23% in a single day.
The Allegations
The U.S. Attorney’s Office in New York has filed charges of bribery and fraud against Gautam Adani, his nephew Sagar Adani, and senior officials from Adani Green Energy Limited. The charges allege that Adani’s company offered $250 million (approximately ₹2,110 crore) in bribes to Indian government officials to secure contracts for solar energy projects.
Adani Green Energy Limited is accused of falsifying statements and misleading American investors and banks to raise funds for these projects. Between 2020 and 2024, the company reportedly paid bribes to secure a 12-gigawatt solar energy project from India’s Solar Energy Corporation (SECI). The project, if successfully executed, was projected to generate $2 billion in profits over 20 years.
Key allegations include:
1. Fraudulent practices to obtain solar energy contracts.
2. Offering $250 million in bribes to Indian officials.
3. Misleading U.S. banks and investors to raise $3 billion.
4. Concealing critical information about the project from stakeholders.
Why the Case Was Filed in the U.S.
The case was filed in the United States because American investors had significant financial stakes in the project, and the alleged bribes violated U.S. anti-corruption laws. The Securities and Exchange Commission (SEC) is also investigating the matter to determine the extent of fraud committed.
Key Individuals Named
In addition to Gautam Adani and Sagar Adani, others implicated include:
• Vineet Jain, a senior official at Adani Green Energy.
• Ranjit Gupta, CEO of Azure Power Global.
• Other high-ranking officials, including Rupesh Agarwal, Cyril Cabanis, Saurabh Agarwal, and Deepak Malhotra.
An arrest warrant has reportedly been issued against Gautam Adani and Sagar Adani, according to Reuters.
The Controversial Project
The controversy centers around a deal involving SECI to deliver 12 GW of solar energy. SECI was struggling to find buyers for the energy, which was critical to moving the project forward. Allegedly, Adani Green Energy and Azure Power Global planned to pay bribes to government officials to finalize the deal.
Political Fallout
The allegations have sparked a political storm in India. Opposition parties, particularly the Indian National Congress, have called for Adani’s arrest and demanded a Joint Parliamentary Committee (JPC) investigation. Shiv Sena (UBT) leader Sanjay Raut claimed the case tarnishes India’s global reputation.
Meanwhile, Gautam Adani has denied the allegations, calling them baseless and politically motivated. In a statement, the Adani Group assured investors that the company would cooperate with all legal processes and that it had not engaged in any unlawful activity.
What’s Next?
The case has escalated into an international controversy, drawing attention from regulators, politicians, and media worldwide. As investigations continue, the outcome could have significant implications not only for the Adani Group but also for India’s business and political landscape.
Disclaimer: The Adani Group has categorically denied all allegations and stated that they are baseless. Further investigations are ongoing.