Indian billionaire Gautam Adani, the chairman of the Adani Group, is facing serious charges in the United States. According to US prosecutors, Adani and seven others, including his nephew Sagar Adani, are accused of being involved in a $265 million bribery scheme. The alleged bribery was intended to secure contracts worth $2 billion over 20 years and develop India’s largest solar power plant.
The prosecutors claim that the Adanis, along with former Adani Green Energy CEO Vneet Jaain, raised over $3 billion in loans and bonds by concealing their corrupt activities from lenders and investors. This behavior is a violation of the US Foreign Corrupt Practices Act because some of the lenders and investors were based in the US.
In response to the allegations, the Adani Group has denied the charges and stated that they will explore all legal options available to them. However, a judge has issued arrest warrants for Gautam Adani and Sagar Adani, and prosecutors are planning to hand over these warrants to foreign law enforcement authorities.
The fallout from these charges was immediate, with shares of Adani Group companies plummeting by as much as 20%. The market value of Adani Group companies dropped by approximately $27 billion, and Adani Enterprises saw its shares close down by 23%, marking the biggest one-day drop since the accusations were made public.
Additionally, Adani Green Energy decided to cancel its plans to raise $600 million through US dollar-denominated bonds following the news of the charges. This decision further reflects the impact of the legal troubles facing the Adani Group.
The indictment revealed that Gautam Adani was referred to as “Numero uno” and “the big man” by some conspirators, highlighting his prominent role in the alleged bribery scheme. Sagar Adani, on the other hand, was said to have used his mobile phone to track details about the bribes.
It’s worth noting that none of the defendants are currently in custody, and Gautam Adani is believed to be in India. The charges have also had repercussions on GQG Partners, an Australian investment firm that is a major Adani backer, as its stock experienced a 20% decline.
Gautam Adani, one of the wealthiest individuals in the world with a net worth of $69.8 billion according to Forbes, now finds himself facing serious legal challenges. These developments raise questions about the integrity of India’s business elite and the implications of such high-profile corruption cases on the country’s economy and reputation.