The U.S. Department of Justice (DoJ) has unveiled a five-count criminal indictment against Gautam Adani, chairman of the Adani Group, and several associates. The charges allege bribery exceeding $250 million to Indian government officials for securing solar energy contracts, conspiracies involving securities and wire fraud, and a massive scheme to mislead U.S. investors and global financial institutions. The indictment, announced by the U.S. Attorney’s Office for the Eastern District of New York on November 20, 2024, accuses the defendants of orchestrating “a multi-billion dollar fraud” through deceptive practices.
In a parallel action, the U.S. Securities and Exchange Commission (SEC) has filed civil charges against Adani, his nephew Sagar Adani (head of Adani Green Energy), and Cyril Cabanes, a senior executive at Azure Power Global Limited. The SEC alleges a wide-ranging bribery scheme implicating both Adani Green and Azure Power, a renewable energy company formerly listed on the New York Stock Exchange.
Legal and Financial Fallout
The DoJ’s criminal charges, if proven, could lead to severe penalties, while the SEC’s civil suit seeks a permanent injunction, monetary penalties, and a bar on serving as corporate officers or directors. The SEC’s complaint was also filed in the Eastern District of New York.
Amid these allegations, Adani Green Energy Limited withdrew its planned $600 million bond issuance. Shares of Adani Group companies plummeted by $28 billion in market value during Thursday’s morning trade on November 21, marking their steepest decline since February 2023, when similar accusations arose following a report by Hindenburg Research.
In a statement, the Adani Group categorically denied the charges, calling them “baseless” and emphasizing that all defendants are “presumed innocent unless proven guilty.” The conglomerate reaffirmed its commitment to governance and transparency, pledging to explore all legal remedies.
Details of the Indictment
The indictment focuses on alleged activities between 2020 and 2024. It names Gautam Adani, Sagar Adani, Vneet S. Jaain (former CEO of Adani Green Energy), Ranjit Gupta (former CEO of Azure Power Global), Cyril Cabanes (formerly of Canadian pension fund CDPQ), and other key executives.
Under the U.S. Foreign Corrupt Practices Act (FCPA), it is illegal to bribe foreign officials for business advantages. The defendants are also accused of deceiving investors about corporate compliance, obstructing federal investigations, and concealing fraudulent practices in financial reports.
Broader Implications
These charges underscore the increasing scrutiny of multinational corporations operating across jurisdictions. The case not only threatens the financial stability of the Adani Group but could also impact global investor confidence in emerging markets. The outcome will be closely watched, as it has the potential to set precedents in international corporate governance and accountability.
