Fall of Adani

The meteoric rise of Gautam Adani has become emblematic of a broader issue plaguing India's economic landscape: crony capitalism. The depth of Adani's pockets has coincided with Indian PM Narendra Modi's rise to power, going back to the start of both men's careers in the 1980s.

By 2023, Adani had become the world's third richest man, and despite a long history of credible allegations of financial fraud and graft, nothing would stick. But that year, American investment research firm Hindenburg Research, which had previously exposed several multi-billion dollar stock market frauds, released a report showing some of the Adani Group's dirty dealings. The report caused Adani and his companies to lose about half their value as the Securities and Exchange Board of India (SEBI), the country's market regulator, opened an investigation. But despite being handed the evidence on a silver platter, the investigation curiously stalled and Adani's wealth recovered, while Indian investigators turned their guns on Hindenburg for the 'crime' of exposing allegedly criminal conduct. Then, in August this year, Hindenburg released a new report alleging that the SEBI chief had a stake in some offshore companies that dealt extensively with Adani's companies. Despite outcry from opposition political parties and even the regulatory agency's own staff, the SEBI chief still has her job and has been ducking parliamentary scrutiny.

But the US indictments are the biggest challenge Adani has ever faced. For the first time, his friend Modi can't protect him. Adani and his associates are charged with paying over $250 million in bribes in exchange for favourable contracts. He also raised $3 billion in loans and bonds from American investors on the back of these bribes and through other false and misleading statements. The indictment has already cost Adani and his companies billions of dollars, as several contracts have been ripped up in response to the allegations. And if the case itself goes against him, Adani's businesses would be finished, and he could even end up facing jail time in the US.