Allegations of Bribery in Solar Contracts
Billionaire Gautam Adani, the chairman of India’s Adani Group, has been indicted in New York for his alleged role in a $265 million bribery scheme tied to solar energy contracts. U.S. prosecutors revealed that Adani, alongside seven other individuals, including his nephew Sagar Adani, allegedly paid bribes to Indian government officials to secure solar supply deals. These contracts were projected to generate $2 billion in profit over two decades.
The indictment disclosed that conspirators used code names such as “Numero Uno” and “The Big Man” for Gautam Adani, while Sagar Adani allegedly tracked bribery details using his phone. The charges also encompass violations of the U.S. Foreign Corrupt Practices Act, an anti-bribery law, which prohibits corrupt practices in international dealings.
Among the accused are executives from Adani Green Energy, including Vneet Jaain, and former senior officials from Azure Power Global. Prosecutors allege that the defendants engaged in fraudulent practices to raise over $3 billion through loans and bonds, concealing the corruption from lenders and investors. Arrest warrants for Gautam Adani and Sagar Adani have been issued, with U.S. prosecutors set to transfer these warrants to foreign law enforcement agencies.
Responses and Legal Repercussions
The Adani Group has yet to respond to the allegations, with no immediate comment from India’s embassy in Washington or legal representatives for the accused. In addition to the criminal charges, the U.S. Securities and Exchange Commission (SEC) has filed related civil charges against Gautam Adani, Sagar Adani, and another co-defendant, Cyril Cabanes, a dual French-Australian citizen.
The charges have cast a spotlight on the Adani Group, which has faced scrutiny before. In January 2023, U.S.-based Hindenburg Research accused the conglomerate of using offshore tax havens improperly, a claim the Adani Group denied. This earlier controversy led to a $150 billion decline in the company’s market valuation.
Economic Impact and Recent Developments
Gautam Adani, 62, is the second-richest person in India and ranks as the world’s 22nd wealthiest individual, with a net worth of $69.8 billion, according to Forbes. Despite the allegations, Adani recently announced plans to invest $10 billion in U.S. energy projects, which he claimed would create 15,000 jobs. This announcement came amid his efforts to strengthen ties with the U.S. and during a congratulatory message to President-elect Donald Trump in 2016.
Just hours before the charges were revealed, Adani successfully raised $600 million through the sale of “green” bonds, a move that further highlights the financial stakes involved. The unfolding legal battle threatens to impact not only Adani’s personal fortune but also the reputation and operations of his sprawling business empire, which spans energy, logistics, and infrastructure.
The case serves as a critical test of international anti-corruption laws and raises questions about corporate governance and transparency in major global conglomerates.
