Indian billionaire Gautam Adani, one of the world’s richest individuals and a close ally of Prime Minister Narendra Modi, has been indicted by the United States Department of Justice (DOJ) for allegedly orchestrating a $250 million bribery scheme. The allegations pertain to securing lucrative energy contracts for a solar power plant project backed by international investors, including some from the US.
The indictment, announced on Wednesday, charges Gautam Adani and seven associates, including his nephew Sagar Adani, with violating the US Foreign Corrupt Practices Act. Prosecutors allege that between 2020 and 2024, Gautam Adani and his executives promised substantial bribes to Indian government officials to secure contracts expected to generate over $2 billion in profits over 20 years. The contracts were allegedly backed by misleading financial statements to raise over $3 billion through loans and bonds from international investors.
According to the DOJ, Gautam Adani held direct meetings with government officials to discuss bribes, while his associates documented payments and photographed financial records detailing the bribes. Five additional individuals, including executives Cyril Cabanes, Saurabh Agarwal, Deepak Malhotra, Rupesh Agarwal, and Ranjit Gupta, have been charged with conspiracy and obstruction of justice. The accused allegedly deleted emails and other electronic evidence and provided false statements to US officials during meetings in New York. Most defendants reside in India, except for Cabanes, who holds dual French-Australian citizenship and resides in Singapore.
The Gautam Adani Group has denied all allegations, labeling the indictment as a “baseless move” and emphasizing its commitment to governance and transparency. Despite these denials, shares in Adani Group companies plummeted by 10% to 20% on Thursday, wiping out approximately $28 billion in market value. Adani Green Energy also canceled a $600 million bond sale.
The charges follow over a year of scrutiny after US-based short-seller Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud. While the DOJ did not confirm whether the indictment relates to these earlier allegations, opposition parties in India, including Congress leader Rahul Gandhi, have intensified their criticism of Adani Gautam and his ties to PM Modi, calling for his arrest.
Gautam Adani, worth $69.8 billion and ranked as the world’s 25th richest person by Forbes, is a prominent figure in Indian business. His conglomerate operates across diverse sectors, including ports, airports, power generation, cement, and media. However, his rapid ascent has often been criticized as emblematic of crony capitalism, with his success closely tied to Modi’s political rise.
