The case also underscores broader concerns about corporate governance and investor trust. U.S. law prohibits foreign companies from engaging in bribery while raising funds from U.S. investors
Indian billionaire Gautam Adani and his nephew, Sagar Adani, have been indicted by U.S. prosecutors for allegedly orchestrating a $265 million bribery scheme to secure power-supply contracts in India, reported gujaratsamachar.com citing a Reuters report.
The allegations have triggered a massive fallout for the Adani Group, a ports-to-power conglomerate, wiping billions of dollars off its market value and leading Kenya to cancel a $2 billion airport project with the group.
U.S. authorities charged the Adanis and other executives with securities fraud, wire fraud conspiracy, and bribery. According to prosecutors, the accused paid bribes to Indian officials to secure contracts expected to generate $2 billion in profits over two decades. These funds were allegedly raised through misleading statements to U.S. investors. Despite the serious charges, Gautam Adani’s location remains unknown, and none of the accused are currently in custody.
The indictment marks a second major blow for the Adani Group, which faced similar turbulence after a January 2023 report by Hindenburg Research accused it of fraudulent practices and improper use of offshore tax havens. The report had previously led to a $150 billion erosion in the group’s market value.
If convicted, the Adanis could face severe penalties, further impacting the conglomerate’s operations and global reputation
Adani Green Energy, the company at the center of the latest allegations, has canceled a planned $600 million bond sale in the United States. The fallout has also affected Adani Group shares, which collectively lost $27 billion in market value following the announcement.
The Adani Group has categorically denied the allegations, labeling them “baseless,” and stated it will pursue all legal options. “We are committed to maintaining the highest standards of governance, transparency, and regulatory compliance,” the group said in a statement.
Kenya’s President, William Ruto, has also acted swiftly, canceling a procurement process that would have handed control of the country’s largest airport to the Adani Group. This decision underscores the global implications of the case.
While the White House downplayed the incident’s impact on U.S.-India relations, experts suggest it could strain diplomatic ties. “This feeds into a perception in India that the U.S. may resort to underhanded tactics to hinder India’s global rise,” noted Rick Rossow from the Center for Strategic and International Studies.
Indian opposition parties, long critical of alleged preferential treatment for the Adani Group by Prime Minister Narendra Modi’s government, have called for an independent investigation. Both Modi and Gautam Adani, hailing from the same state of Gujarat, have denied any wrongdoing.
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