Indian tycoon Gautam Adani indicted in US over $250m bribery scheme

Gautam Adani, one of the world’s wealthiest individuals and a leading figure in Indian business, has been indicted in the United States on charges of fraud and conspiracy on Wednesday.

The US Department of Justice accuses Adani, along with senior executives of the Adani Group, of orchestrating a $250 million (£198 million) bribery scheme to secure contracts for his renewable energy company, Adani Green Energy Limited in India.

The indictment, unsealed in a New York federal court on Wednesday, alleges that Adani and his co-defendants paid or planned to pay $265 million in bribes to Indian officials to secure contracts expected to yield over $2 billion in profits over two decades.

Prosecutors claim this scheme was concealed from US investors, who poured billions of dollars into the company over five years.

Adani and his associates are accused of presenting the solar energy project as legitimate while secretly engaging in corruption to win government contracts and financing. Deputy Assistant Attorney General Lisa Miller described the actions as a ploy to "obtain and finance massive state energy supply contracts through corruption and fraud at the expense of US investors."

US Attorney Breon Peace labelled it "an elaborate scheme" that undermined the integrity of financial markets.

Civil and criminal actions
In addition to the criminal charges, the US Securities and Exchange Commission (SEC) has filed a civil lawsuit, accusing Adani and two co-defendants of violating antifraud provisions of US securities laws. The SEC seeks financial penalties and other sanctions.

The named co-defendants include Sagar Adani, the executive director of Adani Green Energy's board and Gautam Adani's nephew, as well as Vneet Jaain, the company’s former CEO and current managing director.

Legal representatives for the accused have not issued public statements, and requests for comment from the Adani Group have gone unanswered.

Adani’s business empire spans ports, airports, and renewable energy, with a clean energy portfolio of over 20 gigawatts, including one of the world’s largest solar plants in Tamil Nadu. The company has pledged $70 billion in renewable energy investments by 2032.

However, the group has faced past allegations of malpractice. In 2022, a US-based financial research firm accused it of stock manipulation and accounting fraud, claims which the Adani Group dismissed as "baseless and discredited."

The allegations raise concerns over corporate governance and transparency within the Adani Group, a conglomerate integral to India’s infrastructure and economy. The charges also highlight potential risks to US investors engaged in international markets.

This legal battle comes as Adani’s companies navigate growing scrutiny over their business practices, posing significant challenges for the billionaire and his sprawling conglomerate.