US Prosecutors Charge Gautam Adani with Fraud; Arrest
Warrants Issued in $265M Bribery Scheme

Los Angeles/Nov 21, 2024
NRIpress.club/Ramesh/ A.Gary Singh

Indian billionaire Gautam Adani and his nephew, Sagar Adani, face serious allegations from U.S. prosecutors, who have charged them in connection with a $265 million bribery scheme aimed at securing lucrative power-supply deals in India. Arrest warrants have been issued for both men, but their whereabouts remain unclear.

The charges come as a significant blow to the Adani Group, a ports-to-power conglomerate led by Gautam Adani, one of the world’s wealthiest individuals. The group's shares plummeted by 25%, wiping out approximately $27 billion in market value. The fallout extended internationally, with Kenya’s President William Ruto canceling a $2 billion airport project with the Adani Group.
According to U.S. authorities, the alleged scheme involved bribing Indian officials to secure contracts expected to generate $2 billion in profits over two decades, including India’s largest solar power project. Gautam and Sagar Adani are accused of concealing their actions while raising funds from U.S. investors, violating anti-bribery and securities laws.

The Adani Group has denied the allegations, labeling them “baseless” and pledging to pursue legal recourse. Meanwhile, the U.S. Department of Justice and Securities and Exchange Commission (SEC) have revealed that the fraudulent activities were linked to a $750 million bond offering by Adani Green Energy, with $175 million raised from U.S. investors.

The indictment has intensified scrutiny of the conglomerate, already reeling from allegations in a January 2023 report by Hindenburg Research accusing Adani Group of financial misconduct. That report triggered a $150 billion market meltdown.

While Indian regulators have yet to comment, opposition parties in India are demanding a probe into the group’s ties with the Modi government. Adani Group maintains its commitment to compliance and governance, emphasizing its adherence to laws across all jurisdictions.
The case, which casts a shadow over U.S.-India relations, is poised to become a significant test of international enforcement and corporate accountability

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