Indian billionaire Gautam Adani, one of Asia’s wealthiest individuals, faces fraud charges in the United States. Prosecutors accuse him of orchestrating a $250 million bribery scheme to secure lucrative contracts and concealing the misconduct to attract investors in the US market.
The charges, filed Wednesday in New York, allege that Adani and senior executives in his conglomerate paid bribes to Indian government officials to win renewable energy contracts projected to generate over $2 billion in profits over two decades.
The Adani Group has strongly denied the allegations, calling them “baseless” and vowing to pursue “all possible legal recourse.”
Stock Market Impact
Following the news, shares of Adani Enterprises, the flagship firm of the conglomerate, plunged 22% on Thursday. Other group companies, including Adani Green Energy—central to the allegations—also saw significant declines. In response to the charges, Adani Green Energy canceled plans for a $600 million bond offering.
History of Controversy
The indictment intensifies scrutiny on Adani’s business empire, which spans sectors from ports and airports to renewable energy. The group has faced growing skepticism since a 2023 report by US short-seller Hindenburg Research accused it of stock manipulation and accounting fraud over decades. Adani denied those allegations, but the claims triggered a market sell-off and an investigation by India’s market regulator, the Securities and Exchange Board of India (SEBI).
Hindenburg Research further alleged connections between SEBI’s chief, Madhabi Puri Buch, and offshore funds tied to the Adani Group, claims both Buch and the conglomerate have denied.
Details of the Charges
US prosecutors allege that the bribery scheme began in 2022 and was accompanied by efforts to obstruct the investigation. They claim Adani executives raised $3 billion in loans and bonds, including from US investors, based on misleading statements about the group’s anti-bribery policies and knowledge of the ongoing probe.
US Attorney Breon Peace stated, “As alleged, the defendants orchestrated an elaborate scheme to bribe Indian government officials to secure contracts worth billions of dollars and… lied about the bribery scheme as they sought to raise capital from U.S. and international investors.”
He further emphasized the commitment to combating corruption in international markets and protecting investors from fraudulent activities.
Political Dimensions
The charges come just weeks after Donald Trump’s election victory in the US. Adani had publicly congratulated Trump on social media and recently pledged a $10 billion investment in the US.
The indictment represents one of the most significant challenges yet for Adani’s conglomerate, with seven additional defendants, including his nephew, named in the case. Reports suggest the US has been investigating the company since 2022, encountering resistance from executives during the inquiry.
