Billionaire Gautam Adani, Adani Group Founder, Faces US Bribery and Fraud Charges.
Indian billionaire Gautam Adani has been accused of fraud in the United States, where he faces allegations of orchestrating a $250 million bribery scheme and hiding it to secure funding in the country.
The criminal charges, which were filed on Wednesday in New York, represent another setback for the 62-year-old Adani, one of the wealthiest individuals in India, whose business interests span from ports and airports to renewable energy. According to the indictment, prosecutors claim that Adani and other high-ranking executives agreed to make payments to Indian officials in order to obtain contracts for his renewable energy company, which is projected to generate over $2 billion in profits over the next two decades.
Insight: FTX Sues Binance and Former CEO Zhao Over $1.8 Billion in Alleged Fraudulent Transfers
The Adani Group has not yet provided a comment on the situation. The conglomerate has faced scrutiny in the US since 2023, following a report from a prominent firm that accused it of fraudulent activities. Adani has denied these allegations, which led to a significant decline in market value. Rumors regarding this bribery investigation have been circulating for several months.
Prosecutors indicated that the US began its investigation into the company in 2022, but encountered obstacles during the inquiry. They allege that executives secured $3 billion in loans and bonds, including from American companies, based on false and misleading claims about the firm’s anti-bribery measures and the ongoing bribery investigation. “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,” stated US Attorney Breon Peace when announcing the charges. “My office is dedicated to eliminating corruption in the global marketplace and safeguarding investors from those who aim to profit at the expense of the integrity of our financial markets,” he added. Officials noted that Mr. Adani met directly with government officials on multiple occasions to further the bribery scheme.
Mr. Adani has a strong relationship with Indian Prime Minister Narendra Modi. He has consistently rejected accusations from opposition leaders that he has gained advantages due to his political connections. In the United States, the president appoints the US Attorney positions. This filing occurs shortly after Donald Trump secured his election to the presidency, promising to reform the US Justice Department. Recently, Mr. Adani took to social media to congratulate Trump on his victory and announced plans to invest $10 billion in the United States.