Gautam Adani, the billionaire from India, Indicted in U.S. for $250 Million Bribery Scheme; faces massive fraud allegations
NEW YORK/NEW DELHI - Gautam Adani, billionaire industrialist and chairman of the Adani Group, was yesterday indicted in the US over charges of his complicity in a multibillion-dollar bribery and fraud scheme, prosecutors revealed on Wednesday. The case, which was filled at Brooklyn federal court accused Adani along with his nephew Sagar Adani, and several other high-ranking officials in the company of paying over $250 million in bribes to secure some lucrative solar energy contracts.
The Allegations
According to the indictment, Adani, who calls himself "Numero Uno" and "The Big Man" in internal communication, masterminded the scam to win contracts raking in more than $2 billion in profits. Prosecutors said Sagar Adani played a key role by following bribes made with his cellphone.
Along with Gautam Adani, executives from Adani Green Energy Limited-Vneet Jaain-and former Azure Power Global officials Ranjit Gupta and Rupesh Agarwal are among those accused. Three former employees from Canadian institutional investor Caisse de Dépôt et Placement du Québec (CDPQ) Cyril Cabanes, Saurabh Agarwal and Deepak Malhotra also received notice.
The case outlines five counts, including bribery, conspiracy, and fraud, accusing the defendants of misleading U.S. and global investors about compliance with anti-corruption and anti-bribery policies.
Global Implications for the Adani Group
The allegations are related to the period when the Adani Group fundraised over $3 billion in capital for its renewable projects. According to U.S. prosecutors, the group had given a misleading impression about being compliant with ethics while indulging in corrupt activities.
This is one of the most severe blows to Gautam Adani, who had been among the world's wealthiest individuals till recently and played an essential role in helping India transition to renewable energy.
Response from Adani Group
To date, the Adani Group has yet to give an official response to the allegations. Calls made after regular business hours in India were ignored. The allegations come amidst increasing scrutiny of the Adani Group's business practices after controversies over earlier financial misrepresentations.
Who the Defendants Are
The accused Indians, Singaporeans and other nationals include:
Seven Indian nationals, among them Gautam Adani and Sagar Adani who stayed in India during the period of the scheme.
Cyril Cabanes is a dual French-Australian citizen who lives in Singapore.
Prosecutors say bribes were used to win solar energy supply contracts, amounting to an unfair advantage contrary to competition and global anti-corruption laws.
What happens next?
If convicted, those involved including Gautam Adani might face stiff penalties, including huge financial penalties and imprisonment. According to reports, some legal experts expect the case will attract increased scrutiny on the global operations of the Adani Group, which will eventually affect investor confidence and market valuation.
The U.S. indictment heralds growing willingness by countries to determine the accountability of multinational corporations for corruption, irrespective of their home base.