Adani Group Faces Bribery and Fraud Charges in the U.S.
On November 21, 2024, the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) announced bribery and fraud charges against Gautam Adani, his nephew Sagar Adani, and six others linked to the Adani Group. These allegations pertain to a $265 million bribery scheme aimed at securing lucrative solar energy contracts in India. The alleged violations involve the U.S. Foreign Corrupt Practices Act (FCPA), accusing the group of deceiving U.S. investors about their anti-corruption practices during fundraising activities.
The scheme reportedly involved bribes to Indian officials to secure energy deals worth $2 billion over two decades. Adani Green, the conglomerate’s renewable energy arm, allegedly raised $175 million from U.S. investors while providing misleading information about governance practices. Co-defendants include executives from Adani Green and Azure Power, a renewable energy firm also implicated in the case.
The charges have prompted legal action in the U.S. District Court in New York, with arrest warrants issued for Adani and his nephew. Adani Group, however, denies the accusations, asserting its commitment to compliance and governance while emphasizing the presumption of innocence until proven guilty.
Following these developments, Adani Group’s stock prices saw sharp declines, reflecting investor concerns. This case has further intensified scrutiny of Adani's global operations, already under examination after past allegations of stock manipulation and fraud.
