Billionaire Gautam Adani Indicted in New York on Bribery Charges

Indian billionaire Gautam Adani, a major figure in global business and ally of Indian Prime Minister Narendra Modi, has been indicted in New York alongside seven other executives, including his nephew, on charges of bribery and fraud related to a solar power development scheme.

US prosecutors allege the group orchestrated a $250 million bribery scheme to secure lucrative contracts from the Indian government, projected to generate over $2 billion in profits over 20 years.

Key Allegations:

1. Bribery: Adani and his associates allegedly paid bribes to Indian officials to secure state energy supply contracts.
2. Fraudulent Practices: The group is accused of lying to investors and banks to secure funding for these projects.
3. Concealment: Evidence includes detailed bribe-tracking through phones, spreadsheets, and other documentation.

Consequences:

• Market Impact: Following the indictment, shares in Adani Group companies plummeted between 10% and 20%, wiping out nearly $30 billion in market value.
• Cancelled Bond Sale: A planned $600 million bond sale by an Adani subsidiary was suspended in response to the charges.
• Parallel SEC Action: The US Securities and Exchange Commission (SEC) has also charged Adani Green Energy and Azure Power Global executives for misrepresentation to US investors, which raised over $175 million.

Adani Group Response:

The conglomerate denied the charges, calling them "baseless" and reiterated its commitment to governance and compliance.

Broader Context:

The indictment follows over a year of scrutiny of Adani Group's practices, beginning with allegations by US short-seller Hindenburg Research in 2023, which accused the group of stock manipulation and accounting fraud. That report had already caused an $80 billion drop in Adani’s net worth, severely impacting the group’s reputation.

Political Ramifications:

• Opposition parties in India, including the Indian National Congress, have renewed demands for a parliamentary investigation into Adani Group’s activities.
• The case adds pressure on the Modi administration, given Adani's close ties to the Prime Minister.

This development marks a significant escalation in international scrutiny of one of Asia’s most prominent business empires and could have profound implications for its future operations and investor confidence.
Source: CNN