Gautam Adani Charged in $265 Million Bribery Case in the US

US prosecutors and SEC allege bribery and fraud by Adani Group executives to secure solar energy contracts.

Billionaire industrialist Gautam Adani, his nephew Sagar Adani, and six other defendants face allegations of bribery amounting to $265 million in a scheme to secure solar energy contracts yielding $2 billion in profits over 20 years. The charges, brought under the US Foreign Corrupt Practices Act (FCPA), were filed in the US District Court for the Eastern District of New York.

Key Allegations

• Bribes to Indian Officials: The defendants allegedly paid Rs. 2,029 crore ($265 million) to Indian government officials to secure lucrative contracts for state electricity distribution companies.

• Fraudulent Fundraising: Adani Green Energy and Azure Power Global raised over $175 million from US investors and secured $3 billion in loans and bonds while hiding corruption.

• Code Names in Communications: Adani was referred to as “SAG,” “Mr[.] A,” “Numero uno,” and “the big man” in communications between conspirators.

Defendants Named

• Gautam Adani – Founder and Chairman, Adani Group

• Sagar Adani – Executive Director, Adani Green Energy

• Vneet Jaain – CEO, Adani Green Energy

• Ranjit Gupta – Former CEO, Azure Power Global

• Rupesh Agarwal – Former Chief Strategy and Commercial Officer, Azure Power Global

• Cyril Cabanes – Former Azure Power Board Member (French-Australian citizen)

• Saurabh Agarwal and Deepak Malhotra – Allegedly facilitated the scheme

Timeline of Allegations

• Solar Energy Corporation of India (SECI) Contracts: Adani Group and Azure Power allegedly offered bribes to ensure state electricity distribution companies signed agreements with SECI.

• Meetings with Andhra Pradesh Officials: Gautam Adani allegedly met with high-ranking government officials multiple times between August and November 2021 to finalize power supply agreements.

• Global Fundraising: Defendants raised billions in loans and investments under false anti-corruption assurances.

US SEC and Prosecutor’s Actions

The US Securities and Exchange Commission (SEC) filed parallel charges for securities fraud and misleading US investors. Arrest warrants have been issued, with plans to involve foreign law enforcement for extradition.

Statements and Reactions

Adani Group: No official statement yet, but sources maintain that the charges are allegations, and the accused are presumed innocent until proven guilty. Political Opposition: Congress leader Jairam Ramesh called the indictment a vindication of the demand for a Joint Parliamentary Committee (JPC) investigation into the “Modani scams.”

This case puts global scrutiny on the Adani Group, with significant implications for its operations and reputation. The SEC and prosecutors emphasize that the investigation highlights the need for transparency and accountability in global investments.