The Adani Group, a leading Indian conglomerate, has refuted allegations made by U.S. authorities accusing its founder Gautam Adani and seven other executives of fraud and bribery. The charges, announced by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC), claim the group engaged in a complex scheme to secure solar energy contracts in India and raised billions from international investors through deceptive practices.
In a strongly-worded statement, the Adani Group labeled the allegations “baseless” and pledged to pursue all legal remedies. “We are a law-abiding organization, fully compliant with all applicable laws,” said a spokesperson. The group reaffirmed its commitment to transparency and regulatory compliance across its global operations.
According to U.S. prosecutors, Gautam Adani, alongside key executives Sagar Adani and Vneet Jaain, orchestrated a scheme to pay over $250 million in bribes to Indian officials to secure contracts projected to generate $2 billion in profits over 20 years. These contracts were tied to a 12-gigawatt solar energy deal with the Indian government. The indictment also accuses the group of falsifying records and misleading investors about anti-bribery compliance programs while raising $3 billion in loans and bonds.
The charges, unsealed in Brooklyn federal court, also implicate executives of Azure Power Global and employees of a Canadian institutional investor, bringing the total number of defendants to eight. U.S. Attorney Breon Peace stated, “The defendants orchestrated an elaborate scheme to bribe Indian government officials and lied to investors, causing significant harm to U.S. financial markets.”
The announcement has dealt a blow to the conglomerate's financial standing. Shares of Adani Group companies plummeted over 10% on Thursday, erasing $30 billion in market capitalization. Dollar bonds tied to its subsidiaries also witnessed sharp declines, marking the group’s largest market downturn since a January 2023 report by Hindenburg Research accused it of stock manipulation and accounting fraud.
Adani Green Energy, the firm at the center of the allegations, announced it would halt its planned $600 million bond sale.
The DOJ has issued arrest warrants for Gautam and Sagar Adani, with international law enforcement assistance being sought. While all defendants are presumed innocent until proven guilty, the allegations could have broader implications. Analysts see the case as a significant setback for Adani, who has faced scrutiny over alleged political ties with Indian Prime Minister Narendra Modi—a claim he has consistently denied.
Lisa H. Miller, Deputy Assistant Attorney General, emphasized the seriousness of the case: “This indictment alleges schemes to pay over $250 million in bribes, defraud investors, and obstruct justice. Such actions erode trust in global markets.”
The Adani Group maintains its stance that the allegations are without merit. With investigations by the DOJ and SEC ongoing, the outcome of the case could redefine the group's global reputation and financial prospects. Stakeholders are closely watching developments, as the case underscores the importance of corporate accountability in international markets.