US prosecutors have charged Gautam Adani, the 62-year-old chairman of the Adani Group, along with seven executives, in connection with a $250 million bribery scheme aimed at securing solar energy contracts in India.
The indictment accuses Adani and others of orchestrating an elaborate plan to pay bribes to Indian government officials, while misleading investors about the company’s anti-corruption compliance measures.
Central to the allegations are Adani Green Energy Limited executives, including Adani’s nephew, Sagar Adani, and Vineet Jaain.
Together, they are charged with securities fraud conspiracy, wire fraud conspiracy, and securities fraud. These charges come amidst claims that they raised over $3 billion to fund energy projects, while concealing their involvement in corrupt practices, as reported by CNBC.
The five-count indictment, filed in Brooklyn’s US District Court, also names Ranjit Gupta and Rupesh Agarwal, former executives of Azure Power Global, alongside three former employees of the Canadian investment firm Caisse de Depot et Placement du Quebec - Cyril Cabanes, Saurabh Agarwal, and Deepak Malhotra.
The alleged misconduct, while centred in India, is being prosecuted in New York owing to activities that reportedly occurred within the Eastern District, linked to both the bribery scheme and the capital-raising efforts.
In addition to the criminal charges, the US Securities and Exchange Commission (SEC) has filed civil complaints against Gautam Adani, Sagar Adani, and Cyril Cabanes, alleging their involvement in corrupt practices that enabled Adani Green Energy and Azure Power to secure lucrative solar energy contracts from the Indian government.
According to Bloomberg, Gautam Adani is accused of the following charges -
- Personally meeting Indian authorities to facilitate the bribery plot.
- Coordinating with co-conspirators using electronic messaging apps, including during visits to the US, to discuss execution strategies.
- Documenting the bribery scheme extensively, including photographing bribe summaries and tracking payment locations via mobile devices.
- Preparing presentations outlining payment strategies, with one document labelling direct payments to the Indian Energy Company as a "Development Fee."
- Using code names such as “Mr A,” “numero uno,” and “the big man” for Adani, while others were referred to as “V,” “snake,” and “numero uno minus one.”
- Destroying evidence, including PowerPoint analyses and electronic communications, to obscure their involvement.
- Emailing himself photos of a search warrant and grand jury subpoena issued by the FBI to Sagar Adani.
This case has already sparked significant international scrutiny, with bonds of Adani Group companies tumbling following the announcement.
Opposition parties in India have also demanded an inquiry into the allegations, raising concerns over the broader implications for India’s energy sector and governance.
